When asked about Kogas deal here is the reply.............ZahnAs...

When asked about Kogas deal here is the reply.............


Zahn
As you may now be aware, Blue has agreed to an extension on the exercise of the farm in option, as requested by KOGAS we announced this to the market today.
KOGAS became a little unsettled over the last several months by the uncertainty caused by the RSPT and the willingness of the govt to suddenly change rules- they are not yet convinced that the war is over! The extension also gives blue the opportunity to add value by proving up reserves and thus the asking price should KOGAS wish to exercise their option in Feb 2011.
The relationship with KOGAS is solid and now that this extension has been bedded down should grow further.
Whilst there may have been the appearance (from the outside) of a lack of action on of the farm in option front, I can assure you that we have been working this issue hard to get resolution we now have.

Hope this assists.



Cheers

John Phillips
CEO & MD