the CLRS has not been proven yet and we wait for an update of a new test. At the last GM the company appeared confident that the bugs were pretty well ironed out and a new test would not be far away. We wait to see if Bill has in fact got the CLRS working efficiently. At this stage it would appear that they are a few years behind with this technology to their announced plan. We should be receiving commercial income from the CLRS by now according to announcements 18 months or so ago. The reason I am not too phased one way or the other is if things go extremely well and we achieved projected potential market share then we generate around $14m p.a in income until competitors catch up. Nice to have but not a company maker. With regard to the GT3000 we have a contract already completed and another to commence later this year. Sign and sealed. This can develop with AWT into multi contracts in 2012. AWT have been active in the development of the modifications for the rig to make it ready for the task at hand. So why you say 1 to 2 years away is somewhat of a surprize. All the information has been posted on and is in the asx announcements. As apart of the IP agreement further rigs must be manufactured however which size rigs will no doubt be up to the company with Warrens guidence. In the meantime we have a rig that is more than capable of shallower drills without modifications. Such drills for mineral/water etc is quick and in high demand and is also profitable. The company has tendered and as Matt said at the meeting we haven't been told that our tender has not been successful so we wait whilst the negotiations take place. Hopefully we get a contract to get the cobwebs out of the rig prior to November when we drill the Whicher Ranch project. I am somewhat bemused by a few comments about the drill not covering the cost of the modifications. That is what the company raised cash for. The drill at Busselton doesn't have to cover any costs. The modifications aren't consumables that disappear after the one job. We make this drill successfully and the door flys open. The very worse case scenario for the GT3000 is it becomes a rig that focuses on the lower end shallow drills and does that twice as fast and much more cost effectively than any other drill rig on the market. But why have a vision for only trinkets when there is treasure to be had? Whilst timings are frustrating for us all I think we must accept that we have independent tests on the rig, we have expert assistance from the likes of AWT and we have the guy who knows best saying that it can do this type of drilling and his vision is for the rig to do geothermal drills. That is why he invented it. Sometimes the most proactive strategy with investing is simply to do nothing and let the company do what needs to be done. In the meantime we can prophethise and post away :)
CKK Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
