Edision Capital Raising Report, page-6

Ashe

These are good documents, but are rather dated now. The industry has changed dramatically over the intervening time and the advent of gas to LNG has again shifted the dynamic.

The current gas debate is interesting, but it is apparent that the manufacturers want cheap volumes of gas and these are just no longer available for sale as we move to more expensive sources of gas with longer transportation tariffs. Copper gas now has a economic cost of $6-7 per GJ plus transport, so it is not feasible to sell it at the lower prices being quoted in the AFR today.

The best source of information is the Energy Quest publications, which are expensive, but often get some press. I would recommend that you read and listen to them. History would indicate that the AEMO data is not correct, although it is always relied upon by government and the end users.

FWIW, I see LCK as having about 1,500 to 1,600 PJ of saleable gas which can be sent to market via a new pipeline or utilised in the local new power station. The number is lower than the current 2C number, but takes into account the recoverability of gas from coal and also subtracts the fuel gas which is used on site to run the show. This then equates to the traditional gas reserves often quoted by conventional gas companies.

Hope this helps.

AL