email from jh re questions

Response to Questions from JH, i did ask if ok to post in HC.Hope some find this useful. Very prompt in answering the questions, so much appreciated.


Hi John,
I have a some questions submitted from Hot Copper forum, so if you dont mind I will post your response on that forum.


1. Why wasn't the Capital raising done when share price was steady at 13.5-15c.

RESPONSE:
JV outcomes are difficult to predict.

2. They want more clarity with regards to the JV agreements, too cumbersome and not sure what issues/barriers are.

RESPONSE:
I can say anything other than what has been announced but BG/PXA, ROG and HEN are in default, if they do not pay, we have options to terminate, dilute or retain them and chase the debt in a court of law. As to why they are not paying, I can not add anything to the equation as yet but hope to soon.

3. What happened to the plans to flow test CBM93-01?

RESPONSE:
On hold until current CSG drilling programme completed, matter is under review with JV partners.

4. When are we going to see some gas saturation results and a plan to monetise all this coal we have found?

RESPONSE:
We have announced some initial on site test results to date but JV partners have not wanted to continue with this process, results are a mixed bag to date, conclusions will be reached once all wells drilled, all lab results in and analysed, probably a couple of months yet. I have already announced however in the half yearly that it appears that there is higher potential from shallower drilling in terms of biogenic gas, such as the next well site CBM 107-002, rather then in deeper thermogenic sites.

5. What will happen with the bonds, need to draw every 45 days, is this going to continue after capital raising?

RESPONSE:
I can not announce anything on this at this stage but the bondholders are flexible to an extent. There is reference to this in the prospectus released today.