inp - valuation given flax+yarrow reserves, page-15

re: re:ian Graham,

Congratulations. You have finally been able to piss me off.

Point One :

Beach do not have significant proved reserves in the Cooper. They are now the #3 player, behind Stuart and VE Faulconer/Innaminka.

Depending what Worrior-2 and Nutmeg end up with, they could end up as #4.

Beach has 75% of Sellicks and Christies, 50% of Aldinga and 25% of Acracia.

Neither Sellicks nor Christies have impressive flow rates - they'll need more drilling to hit 1000 bopd.

Aldinga's flow rate is truly unimpressive.

And Acracia is 75% Stuart.

Point Two :

Beach's corporate strategy is - still - unclear. They did a massive stock issue that took their price from 39 down to 30. It's recovered a bit, to 35-odd, but we still dont know what they'll do with the money.

Point Three :

Despite their previous relationship, GOG did not JV Nutmeg with Beach. You'd have thought involvement in a drill would have been worth a paltry mill, but no, Beach didnt want to be involved.

Point Four :

Trucking in the Cooper costs a lousy $2-$3 a barrel. A pipe is nice, as it puts this straight on the net per barrel, but unless you are talking gas, it isnt essential.

Point Five :

If there is major infrastructure, it would be crazy for one junior to do it alone. Rest assured that everybody is going to be in the pool on this one - anything else is nuts. Hell, I'm sure even VPE will find something to throw into the pot.

Go read Innaminka's recent releases. Particularily the 'Forward Planning' release of 23 January. Now tell us that, rather than merely buying in to a wider project, Beach will do it entirely alone.

Ian Whitchurch