Ann: Quarterly Activities Report and Cash Flow , page-17

re: Ann: Quarterly Activities Report and Cash... Guys, I have spoken extensively to the management and yes I don't like the answers I get because they seem more interested in finding problems rather than the solutions. They seem to concentrate more on finding excuses not to do anything and any excuse seems to do.

The last company figures for the Greater Mackellar structure (proposed Rosella well) were a Pmean OGIP of 1.3 Tcf. This is only the conventional gas resource and does does not include CSG. So potentially a very big discovery.

See page 8 of the MDs presentation to the last AGM at http://www.metgasco.com.au/files/1168598.pdf

The original testing was very positive for a wildcat well and the field would almost certainly be commercial at $8 to $10 gas. But it is not really possible to determine the lowest price at which the field becomes commercial from a single well. More drilling and testing is required.

A new well to further test the structure is likely to cost around $6 million. But MEL are likely to need more than 1 additional well to properly evaluate the field.

Yes it is a potential company maker in its own right, but the management has been stalling. They do not seem to have carried out any recent testing so the stalling would not seem to be due to new information.