Hi YTI listened and picked up a few futher points: On the CSG:...

Hi YT

I listened and picked up a few futher points:

On the CSG: Point 1:Corella 11 (first demo well) over last 18 months has had the pumping improved. Corella 17 (second demo) 1 Km from Corella 11 is improved in terms of the drilling design, based on experience with the lateral drill in Corella 11. Drill will be straighter and with better drainage. Hoping to see an improvement in gas productivity as a result of experience gained.

Point 2 Wyan E1 now at 175000 SCF/day and with very little water. Less water I understood can lower production costs. Johnson made the point the coal seams can be heterogeneous (mixed) from drill site to drill site.

Point 3: Conventional gas: They need to drill to 2200 m to test out the possibility of gas bearing sands below the 1300 mark which was the maximum depth in last years drilling in the kingfisher discovery. Johnson made the point a conventional gas will have much lower production costs than CSG.

Point 4: Johnson indicated they are concentrating on improving understanding productivity of the current reserves of CSG and potential for conventioal gas. Metgasco need to better understand where they should spend their money to develop gas production on a commercial basis. At the same time they are progressing with Lions way pipeline to get the gas out to market. They are also progressing with the planning department for the Richmond power station.

Dogbone