lobby the media - starts here!, page-13

While not yet ready to use the word treachery regarding the ESG Board's low price capitulation, the upcoming August upgrade is only one area existing shareholders appear to have been dudded.

Before I mention the other, I refer to the following statement on page 41 of a 5 July 2011 analyst report on ESG by Ords:

Quote: ESG has not actually completed any stacked lateral wells yet. It has previous experience in boring horizontally from a single vertical well at different depths. ESG is confident that the flow mechanics are a simple extension of regular lateral wells. It intends to prove this assertion via trials soon, and plans a pilot in mid-August after its Lucas-Mitchell DRS026 drilling rig returns in late July. Unquote

So it appears that a much bigger upgrade will come next time (Jan 2012?), after the August pilot proves its technique.

If so, the real price STO is paying for the ESG gas is probably closer to 10c per GJ.

The independent expert will really need to be independent, and will have some serious explaining to do in the report on whether this is a fair deal. It certainly doesn't appear so as yet.