drill rigs, page-2

Spot on Shippar! As you report, today's announcement has confirmed that the rigs are indeed finishing up at South Pentland and heading to North Hughenden.

Key points from the update (IMO):

1. Outcropping confirmed at North Hughenden, albeit at a National Park within the boundaries of BWD's EPC. I didn't realise that the size of the Hughenden EPCs is actually 765 sqkm. That's pretty big.

2. A Memorandum Of Understanding has been signed with Queensland Rail and also with Port of Townsville which are important in the process of exporting the coal, and necessary steps towards obtaining finance for the projects.

Lastly, and slightly disappointingly, I have been going through the resolutions which will be put to the upcoming AGM. Noble Group will be no longer be providing technical services to BWD because the company now has the expertise to do this itself (all good). However, the termination provides that Noble Group gets the same number of shares at 20c as provided by the original agreement. The Independent Expert values the company at $37m - $45m, or 22c - 27c per share. The current share price is 28c. I think the share issue should have been done at a better price, perhaps the mid-point of the Independent Expert's range (25c), or the weighted average price in the week leading up to the AGM. Non-Noble Group shareholders are being diluted and this is unfair. I wish I could buy more shares at 20c. The fact is that the value of BWD has gone up substantially due to the increased likelihood of an economic resource at South Pentland following the drilling programme there. Noble should not be getting the shares below their fair price.