capital raising, page-7

They will wait to see BKP results from horizontal wells and possible Chinese joint venture/s.

This reminds me of when QGC started with CBM in QLD. I bought shares in QGC and saw them prove up reserves and get taken over by BG Group. 10 years ago the CBM industry barely existed. Today Santos has decided to go ahead with the $120 billion CBM to GLNG development.

Who would of thought 10 years ago that LNG from CBM would rival the NW Shelf by 2015 ? The same is true of the massive coal, oil, and gas developments that could come out of the NT and South Australia. The recent rail link from Alice Springs to Darwin plus the LNG plant and port upgrades have added greatly to the NT infrastructure profile.

Sapex in SA was sold to Linc Energy. There is about 100 billion tonnes of coal in their SA tenements.

It wont be easy, especially for a junior with limited capital and talent, but a few encouraging results especially from BKP's Joint venture with the Canadians will put a torch under this province. It isn't any more difficult than many of the other parts of the world to develop the resources, why else would RIO be sniffing around. Greenfield developments are first done by the juniors then the majors start to sniff around and start to buy up the juniors that have good ground. The Chinese, Indians and Canadians will also help the cause.

This was on my watch-list for a few years and I have finally bought options and shares in anticipation of future success. Their track record is patchy but they are drilling in very new areas with very little historical data. Their results will give them some valuable data going forward. The GM may be out of his depth, hopefully he finds a great 2nd in command who can really allow this company to shine, or resign and let someone else develop the company.