lng move to 10%, page-4

Hi

LNG's cash position at 28July 2011 (Q report) was 27 million ( including the 20 million form HQEC). From 30 Sept to 6th October they have spent approx 8.6 Million on MEL shares to increase their holding to 8.9%. I guess they are still buying to get over 10% and ensure that a hostile takeover by someone else can not reach the 90% level for compulsory aquisition. I doubt the directors will make a takeover offer (20% trigger), at least another 18 million $ needed to purchase 20% MEL's shares leaving LNG with no cash. Secondly I think MEL and LNG are still cooperating as per the MOU from Nov 2010.

In the Q report LNG indicated the 27 million was sufficient to fund them upto the FID on the fishermans landing project. Suggests to me they have plans for the remaining cash.

Regards DB