longtom, page-13

Markvl,
The numbers GCA are quoting are not reserves. They are quoting resource size, specifically 3C contingent resource. This is based on geologic modelling, seismic interpretation, etc, basically how much volume the rock in place could hold. This should not be confused with 2P reserves which requires commercial rates and volumes to book, as well as contracts. While they have proved (albeit short term) commercial rates, and have a conditional contract in place they have not proven the volume at this point.

I think the key to this will be the new well they drill in the second quarter of 2008, ......prior to them booking reserves in the third quarter. Also, if Santos believes the story, they will acquire the additional 35% of the project which in my mind will confirm Nexus optimism. IF they don't I would have to wonder why.