maybe some other fish flexing their teeth

This is Mr Lincoln Augustus, first second cousin of Holymagiman.

It is just coming on to 8.30am on a fine Tuesday morning here in Kingston, and the day looks good, with the temperature at 80 degrees F and a calm breeze fluttering through the air.

And so we are all sitting here watching the boats out on the waves and thinking the thoughts and eating the goat curry and the chappati bread that Baboo has brought along.

All is nice all is well, and the Jamaica Numba One is as good as ever, and makes us happy that it is good to be alive and well.

And so we chat in amost friendly way about this and that and about our 102 Metgasco shares and where this company is going and when and then we have some Red Stripe to help the curry go down, for it has a lot of tamarind to add to its flavour. And just in case we have confused you, it is the curry that has the tamarind, not the Red Stripe.

And so, what are we talking about today?

Firstly, we are getting rather upset at the way theMetgasco site is going........very much like the ols Eastern Star posts, with spite and malice and one upmanship, and we would respectfully ask those who have wound their way here to lick their wounds to perhaps try to conform a little bit more. A hard ask, we know, but perhaps they could just try.....for once.

We hate to harp back to ESG, but they failed to see the writing on the wall and sat in the burning tower and were so filled with a definite sense of their own self knowledge that defied description that they did not take the lift down before the fire s took hold.

So we would request of them to take the burning fires and their unhhappy flames back to Eastern Star and join us in enjoying some fine Jamaica Nunba One in these Metgasco sites.

Lets keep everything simple here, for we are simple folks who just like to enjoy talking the talk and smoking the smoke with no high-falutin'words being shouted around.

So that is off our chests and we just sitting back here watching the waves and the ships and the fish....and thinking.

There are two parties who been buying into Mel, and them be LNG and ERM. So we have a couple of small fish biting around, causing all sorts of splashing of the waves in an otherwise calm sea.

And maybe one of the fish grows up and gets to take bigger bites and maybe the two fish just be lying there, full so full that them not be eating anymore nothings.

Just the thoughts that are passing in out minds andnothing more. But I must just bring up something that Alvin the Idiot just said as he looked out to the sea, and that Alvin the Idiot is getting so smart that we may soon have to call him Alvin the Imbecile one of these days, if he gets any smarter....but as we were saying Alvin the Idiot said that them boats in the distance were big oil tankers and what was happening to the MOU with FLEX LNG that was announced on 27 september 2010, and that got us thinking.

So we went to the FLEX LNG site

www.flexlng.com

and had a peek at the presentation about the

"Agreements Signed For World’s First FLNG Project - Investor Update June 2011"

and it makes very interesting reading indeed.

In particular, we refer you to page 11 of this presentation, where it is stated that

"Agreements Executed for World’s First FLNG Project

"Agreements executed in April 2011 with InterOil Corporation, Pacific LNG Operations, Liquid Niugini Gas Ltd. and Samsung Heavy Industries (SHI) for a 25-year “Fixed-Floating” FLNG project that will liquefy natural gas from the onshore Elk and Antelope gas fields in PNG

"Commercial operations are expected in 2014; an ideal time to bring new LNG volumes to the market. The FLEX LNG Producer will be moored alongside a jetty, eliminating key technical risks and providing for a low CAPEX solution"

It gives one a very good overview and understanding of the FLEX LNG process, very clearly, for some of the brothers may not understand what is involved.

Then perhaps it would be good to have a look at FLEX LNGs latest presentation

"Seoul FLNG Conference, 25 October 2011"

Page 16 of this presentation would be a good place to browse,

"The LNG Plants: EWC LNG & FLEX LNG /Samsung Project Partnerships

"On February 2, 2011, InterOil and PACLNG and Energy World
Corporation completed final documentation for a 3 mtpa plant.

"The initial 3 mtpa modular LNG plant is expected to process an estimated 2.25 Tcf of natural gas over 15 years.

"On April 11, 2011, InterOil and Pacific LNG Operations
executed agreements with FLEX LNG LTD and Samsung
Heavy Industries for a floating liquefaction project in Papua New Guinea with targeted start of LNG production in 2014. The FLNG vessel will be moored alongside the jetty and have a production nameplate capacity of up to 1.8 - 2 million tons of LNG per annum.

"Samsung provides the construction financing and all
performance guarantees for the FLNG vessel EWC and FLEX LNG will receive, less agreed deductions and premiums, 14.5%
of the proceeds from the sale of LNG by the upstream partners from the FLNG vessel for an initial 15-year period."

Pages 24 to 27 of this presentation present the technicalities of the operation in very simple language, so simple that it was actually Alvin the Idiot who brought it to our attention, so the new brothers who have joined the site should hopefuly understand what we are implying, which is not very much actually.

So now we go back to that Metgasco announcement of 27 september 2010 and everything is beginning to fall into place all around the place, for Baboo is up in the coconut tree cutting down some green coconuts. Coconuts, Jamaica Numba One and red Stripes with the goat curry and chappati, that is the life we live, nothing more and a lot less.

In that announcement, Metgasco stated:

"Metgasco currently has 2,239 PJ (3P) of independently certified reserves in PEL 16 (100% owned) and has recently commenced work to delineate coal seam gas reserves in its other tenements (PEL 13 and PEL 426) which are 100% owned by Metgasco. The Company has developed an internal prospective resource estimate of approximately 14 Tcf of coal seam gas in place in its tenements. Additionally, Metgasco has begun to delineate the conventional gas supply potential of the Clarence Moreton Basin.

"Metgasco has recently made its first conventional gas discovery in the Kingfisher gas field and has identified an
exciting portfolio of conventional leads and prospects to be evaluated.

"Metgasco has recently concluded a review of the coal seam and conventional gas supply capabilities of the tenements it operates in northern NSW (PEL 16, PEL 13 and PEL 426)
which indicates that the gas resources present within these areas are sufficient to supply an LNG plant of up to 3 million tonnes per annum over a 20 year gas supply contract term."

The The FLNG vessel will be moored alongside the jetty and have a production nameplate capacity of up to 1.8 - 2 million tons of LNG per annum.

FLEX signed the agreements in PNG on April 2011, and expect to be in production by "Commercial operations are expected in 2014; an ideal time to bring new LNG volumes to the
market. The FLEX LNG Producer will be moored alongside a jetty, eliminating key technical risks and providing for a low CAPEX solution."

So, perhaps if MEL did go in with FLEX, it would be in production before the Gladstone mob....food for thought.

And it would not need to depend on the Lions way pipeline so much, though them folks in Brisbane would gladly love to have it, as they face a gas shortage very soon.

In page 20 of the Metgasco Investor Presentation on 17 June 2011, it is stated that:

"MOU with leading FLNG technology provider FLEX LNG for Floating LNG located offshore NSW."

That makes a lot of sense, as an offshore FLEX LNG in NSW would be close to PEL 13, PEL 16 AND PEL 426, and even Alvin the Idiot (soon to be promoted to Alvin the Imbecile) can see, by looking at the map of the coast of NSW just where such a facility will be most probably located, so we will not bore the brothers with such mundane things.

So perhaps it is not LNG or ERM that is going to be doing the biting, and if Metgasco can stay independent for a while, things could become most interesting.....and perhaps Metgasco could trump the others and get the first gas out of the Eastern seaboard.....only time will tell.

But the coconuts are down and the juice is fresh, so I must go now before all is gone.

Blessing of the Lord
MLA