**keep an eye on this**, page-4

I think COI has been overlooked by the market and could re-rate very quickly if the Tipton West JV with AOE comes to expected fruition. Especially with COI having 20%, a miniscule market cap of $5M and only 43M shares on issue.

Extract from AOE’s latest investor presentation Feb 15th. Tipton West Overview

* Top Taroon Coal
* 3P reserves 1086 PJ
* 2P reserves targeted by Q1 2005
* Currently three gas sales MOU’s for supply of 125 PJ over 15 years
* Ultimate production target of 25 PJ p.a. from 2007/2008
* First gas sales targeted for 2006
* Pressure response seen in monitoring wells up to 7kms away

From AOE’s press release regarding Tipton West. Chief operating officer Nick Davies said the 3P gas reserve certification was a milestone for Arrow Energy as an emerging gas producer. “We knew that Tipton West was very prospective for gas, but this is a huge amount which has exceeded our internal expectations,” he said. “The outlook for Tipton West is very encouraging and we will be working hard over the next few months to confirm the commerciality of the field.” Mr Davies said Arrow expected to utilize the large gas field to fulfil a number of sales agreements already in place with BP, Wambo Power Ventures and Queensland government owned electricity supplier Ergon Energy.

COI looks like it has now based around the 12c mark and if the other gas companies are anything to go by (AOE, KAR, QGC etc) then the upside for the forgotten micro-cap COI is huge if AOE releases a significant reserve number for Tipton West in the near future, without any re-rating for COI’s other projects.

COI doesn’t trade in large volumes, but for the smaller high-risk oil/gas speculator, it offers one of the best risk/reward situations around at the moment. Well, that’s my view anyway, and as usual, other opinions would be appreciated.

Mensa.