clarification needed

From the ann it seems that the 80% is earned on a well-by-well basis with the 4000 foot around the well coming under the deal when a well is paid for. I wonder if this means that P&J can stop the deal when they see fit - I don't think that is the case.

Another point I am unclear on - Is the 25m funding just allowing the financier access to 40% of the gas on the wells they fund (and surrounding 4000 foot of tenement) or do they earn 40% of the gas right on the entire tenement by total funding of only $25m (NB there is about $5 billion to $10 billion gas there). If the latter is the case - does that mean that they would be contributing their proportionate share to the other wells after the first six wells were complete? If that were the case they would be paying 40% for 40% and EMR 60% for 40% of the rest - which may make it marginal.

Have these issues been clarified?

Another issue I am unclear on - given the diagram on the presentation - it seems that they are planning step-out wells within the 4000 foot diameter about each well. Once EMR can paid for the full drilling of the central well in each area, are the step-out wells then paid 40% EMR, 40% bank, 20% P&J, or is the same funding deal applicable.

All of these issues have a dramatic effect on the value of this field to EMR. I think they should be clarified to the market. If anybody reads what has been released differently to me and thinks these issues are clear please reply.