eir/ctp farmin analysis, page-19

Tejveer1,
I think it is actually a better deal than Sav-j has portrayed. The $10 mil per TCF of proven 3P will be a free bonus to CTP on top of the $220 mil (our 55% of $400m per TCF) of resource value allocated to us in our free carried ride in EPA 130. The alternative could have been to do another capital raising for us to take EPA 130 from a tenement under application past the seismics, drilling & flow testing into a proven tenement. Let's not forget that our risk becomes nothing here too.

As Sav-j suggests somewhere between 1 & 3 TCF of 3P pa is not out of the question to prove up. $10-30 mil cash added our till for a year or two or three could be paying for exploration in another tenement/s allowing us to also be technically free carried elsewhere through such income. If all goes to plan all holders will have no choice but to acknowledge JH's brilliant plan here imo. If EPA fails to show us the money we could also thank him for saving us the cash on EPA 130 too imo. Furthermore EPA 130 is far from our greatest asset at this stage with very little expenditure committed to it so far. It appears to only contain coal in 25% of its landmass which is a small fraction of the Pedirka coals within our tenements. All be it they are at the shallower end of the coals of the Pedirka which leads me to wonder if this could be the beginning of JH's GTL dream with EIR having the right contacts & all. Time will tell how it all unfolds.

A snippet from p26 of the "Good Oil Presentation" http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00986699

"EPA 130 EIR/GSG deal terms sheet signed CTP free carried initial farmin works, 3 wells, $3 million seismic, 2.4:1 promote, ongoing $10 million/TCFG 3P reserve premium"