looking good, page-21

So reserves are just gas right? XPJ =YBillion Cubic Feet of gas. So the reserves can all be extrapolated out to to give you an indication of the $ revenue. The revenue is the same from one 'stocks' reserves to the next providing they are sold at the same time > to the same consumer.

Yeah, so whats different between the two?

The rate at which they extract the gas, the cost at which they extract it and get it to the consumer.

Thats why I dont agree.

However the real game here is the prospectivity of each of the stocks -> outside of their current established reserves that 'the comparison' was being made against.

ESG is a pure CSG play at present and a big one at that. Their coals have been shown to be good producers, well at least in the early stages of the well life. They really need a good 2-3 years of data to get some 'more perfect' predictions on performance; however I think they know enough about them now give a strong indication that the well will match the modelled reservoir. This places confidence in the model and allowing reserves to be established under the various standards.

So anyway, back to MEL. MEL is undervalued and we are looking at conventional gas being the driver for this right now. The results at Corella have not been stunning - but this does not mean they will not improve as the company builds knowledge and trials different well configurations. Game on for the conventional guys.

Cheers,

SF