EME annoucement has no doubt intrigued most Sugarloaf JV...

EME annoucement has no doubt intrigued most Sugarloaf JV partner's shareholders and provided new information as to the project's current and planned activities. As a concerned shareholder I sent the following to EKA this weekend:

"The EME raises a number of issues for all other JV partner's shareholders in particular to that this is the first acknowledgement that there is a plan to initiate an aggressive drilling program and a 'third-party operator' has already completed a 'test well' on Block A which has flowed gas and associated condensate, and is preparing to drill the next well within 2 months. Other issues that need to be addressed include:

1. Your ASX Release of 24 April 2007 detailed that the Joint Venture's land acquisition program within the Area of Mutual Interest ("AMI") had increased the area over which the Joint Venture has rights to all depths to approximately 19,500 acres to date. Of this area how much is in Block A and how much is in Block B

2. EME release detailed that it currently holds a 6% interest in Block B but infers that it holds no interest in Block A. Is this also the case for EKA in that it holds 20% interest in Block B but holds no interest in Block A.

3. EME release detailed that t he agreement covers the next 16 wells, each costing $US5m, to be drilled on either block. What is Eureka's commitment to these 16 wells and what will determine if they are to be drilled on Block A or Block B.

4. With each of the wells expected to cost $US5m there is a need to confirm whether they will be deep wells seeking targets in both the Cretaceous and Hosston formations or only shallow wells seeking targets in only the Cretaceous formation.

5. The EME release detailed that the third-party operator of Block A has drilled a test well confirming flowed gas and associated condensate. Isn't this information relevant to all JV partners and their shareholders? Test well location, total depth and show depths would seem to be of great interest.

I believe there is a need, by means of a formal announcement, to clarify Eureka's position in the 'Sugarloaf Project' in light of the information detailed in the EME release. Please note that this email has also been forwarded to Aurora Oil and Gas of which I am also a shareholder."

I hope other shareholders will also query the board.