implications of bg move on origin, page-27

Lindo

I've been in ESG for over a year and you have been fairly positive over that time. I think the ESG team has consistently underpromised and overdelivered and I wouldn't be surprised to see their end 2009 target of 600 PJ being reached well in advance of that date .. perhaps by early 2009. And as David Cassey said recently in a release .. any consversion of MOU's to gas sales agreements onve sufficient reserves are established will see ESG rearted significantly. The recent ABN Amro report siad the same and it valued them currently at 57 cents and noted that 32 cents of that consisted off a 50% risking of them achieving 500PJ. So all the rest of their assets and cash was valued at 25 cents. If they achieve 500PJ then Amro's valuation would be 89 cents.

One thing I will say in response to it being a high risk play ... its nowghere near as high risk as most junior oilers .. for them one drilling event can make or break .. whereas with CSG its just incremental. And in fact the Dewhurst drilling recently significantly extended known caol seam distribution and thickness.

Its a goer all .. Lindo must just be in a bad mood!!

H