Calling the bottom, page-8

Wrong about many things:

1. As a 20% JV partner they could have still taken control of the board in fact thats what they did and in fact only owned 10%. They knew that by replacing the board the company would need cash and that they could take their stake up to 20%.

Sequence of events : Owned 20% JV. Bought 10% shares , Ousted CM board - If it was so valuable they could have increased their stake to 20% shares and had 20% of JV as well. Yet they sell the 20% JV. Yes they could not control expenses in JV but they could and had control of the board once the ousted CM.

Why sell the 20% JV if they already controlled the board only reason is that it makes it a clean deal they can sell their shares and they are out of the gas business. We can debate the rest of their gas adventures but in reality it all only made sense if they were going to follow their electricity plan and in some part wanted to have a part internal source of supply. They dont use EGO gas and have alternative long term supply contracts for their peak power stations.

They dont make any mention to Gas other than to refer to EGO debt ...

Really if its such a great asset why no offers - really this forum needs to accept that right now with all the information out there the market says its only worth $32 million and that includes a running plant and gas source. Sad as that has made me in the past after thinking it was worth north of $100 million that's reality.

There is no evidence from all of their presentations that they are allocating any resources to GAS - in fact they have sold the JV at a fixed price. I think logically if they walked in and offered 70c per share there would be a queue at the exit given what has been going on. That would only cost them $58 million for the 80% they did not own. I would suggest that if they wanted to they could do that deal easily.

Also realise that the St baker family is now one step further away and that as I understand it the EGO process and connections are linked to that family more than to ERM. St Baker has over the past 2 years sold some of his shares and bought in JV a coal power station outside of ERM. The ex CEO is running a graphite mining venture these days...

Sorry there is a lot of evidence. Ask for an interview with ERM re gas and they will refer you to EGO.

Lastly no-one doubts that there is value in the Perth Basin just right now not in EGO...