Hi EveryoneThe following are from my notes of the meeting...

Hi Everyone
The following are from my notes of the meeting today.

All resolutions passed.
KN1..not really happening with issues about the commerciality of the field. this does not reflect the size of the field but the ability to sell the gas at a profit. Further developments at the field will be delayed until they can assure the gas is 'commercial'

PEP 11..interesting. BUY believe the geology is sound. MEC have been guaranteed $7m from Ken Talbert of Macarther coal/karoon gas, conditional on finding further funding. Cost of drill $20m-$25m. Rig rates have come down from $420k pd to $200k pd. There are 7 jack up rigs in Singapore laying idle. Licence has been renewed. they dont expect any great hassle getting permission to drill. (the seismic was more environmentally 'damaging' than any drill. however there was no news on tenders, timing, funding. BUY quite happy with 15% -could have gone higher (with contribution).

BUY is negotiating to be operator at Utopia and also take over from EGO to run 50 Bcf Thornbill in WA. EGO dissapointing operator. They have great confidence that Utopia can produce decent oil and have plans in place if current 60% owner will sell.

They see great opportunities in tenements purchased from Aussam. (Aussam parent went bankrupt) These licences have some real gems including Bellbird which has a known oil discovery which has flowed oil to surface. (alot of positives were said about Surat tenements)

2 wells to be drilled 2nd half but dependent on operators (MOS and STO).

They have already sold the 70m shares to be issued after todays Res. 3 was passed.
They are quite comfortable with current cash situation.

They are concentrating on Surat basin and are definitely looking for further acreage in Cooper. They probably have CSG but no work done.

My over all impression is that BUY is on the right track. BUY is not relying on either PEP11 or KN1.PEP11 has greater chance of coming off in ST. Its concentrating on Surat and is looking for greater role as operator in its licences. I can see it needing more cash for purchases but they stated that there was a JV partner waiting in the wings.
Dont expect much news for couple of months... excluding PEP 11 which may happen at any time....MEC are a bit secretive apparently.

I came away from the GM believing this is a strong hold and accumulate.


Disclosure..a reasonably large holding