brokers valuations, page-10

Purd2,
We should always be vigilant and make sure that NWE's operations are as per the standards set down by the West Australian DMP. These regulations are now very detailed and enforced. So far so good. NWE and Haliburton have adopted best practices.

The Greenies and the Wilderness people have been inflamed by various media anti fraking points many of which have emanated from an emotive documentary film put out in the USA a couple of years ago by Josh Fox. This film showed kitchen fawcett water exploding into flames when ignited. This doco did the rounds and the emotion against fracking grew rapidly....and strongly.

It got stopped in its tracks ( to some extent...emotions are very difficult to quell ) when the Oil Industry went along to one of Josh's meeting and produced another piece of documentary evidence which featured water from kitchen
fawcetts igniting as well. ONLY THIS TIME THE FILM WAS MADE DECADES BEFORE FRACKING HAD EVER BEEN INVENTED!!!!.

The trouble is that 95% of the world's oil and gas has made its way to the earth's surface over the last 150 million years. The stuff we are drilling for now is the remaining 5%. On the journey up through the earth's crust the oil and gas sometimes passes through aquifers, some of them pristine. There are no environmental policemen down there with signs saying " Please do not bubble through this aquifer. Please use another path".

Thousands of aquifers have been contaminated with natural gas naturally bubbling up from the earth's crust. When it does manifest itself you will find wildlife, animal and human health deteriation.

It is also useful to remember that there have been over a million fracks completed successfully in the USA and other parts of the world. Of course there have been examples of shoddy practices and that is why the Environmental Protection Agency ( EPA ) has now really toughened up their act to the point where fracking is now one of the most vigilantly controlled practices going. The detail is mind boggling.

As you are well aware NWE, Bharat and AWE presented a very detailed fracking program to the WA DMP which gained approval. It was, however, appealed and consequently every bit of the proposed Arrowsmith program was gone over again with a fine tooth comb. An appeal incidentally which cost the protesters nothing and the JV considerable money. Oh for the day when protesters have to meet costs if their protest fails.

It is interesting to look at the situation in New Zealand. Several protestors have gained momentum banning fracking in certain areas but against that the Minister in charge has publicly come out in support of Fracking. Also , to back him up, Minister Nick Smith has recently published a paper in support of Fracking as well.

It is of some comfort to know that the Arrowsmith Frack has been completed successfully in a remote area and that NWE have been working alongside the local ( sparce ) poulation to ensure all parties are satisfied that the program complies with the exacting standards set down.

But we must remain vigilant and ensure that Best Practice is our continuing standard.

Both NWE and AWE have both reported that they are ECXCEPTIONALLY PLEASED with the results to date. Frankly they could'nt have been better and the latest info out from the WA DMP that the Kockatea oil find is a very serious find has got my little brain racing.

But remember you have to have a lot of patience in this game. Nothing is easy. Sorry this is a bit long but I hope it gives you a bit of comfort.

GOOD LUCK ALL LONGS.