new shareholder, page-3

Hi Spindle,

Welcome also !

I see that you have met our esteemed consultant "Some Guy" aka SG. He will be able to tend to your cognitive needs as you continue to partake of this ESG Clinic.

You may have noticed a good presentation today by our Jockey David Casey aka DC . Good communication of important information, graphic design and layout.

Parts which drew my attention:-

- Soley focussed on gunnedah basin coal seam gas since 2006 (S2) (This statement may surprise some long term holders - 2006 is the year that ESG got an extra 32.5% from HGO in exchange for 19.99% of ESG shares - taking ESG to 65% of PEL238. Santos subsequently bought those shares off HGO in a blaze of strategic brillaince in 2009.)

- Access to two industrial ports for LNG Export (S2)
(This is well tinged with suspense , we know about Newcastle aspirations with LNGN but what is the other port? Shows that ESG just simply loves and values Santos as a partner for the strategic access it can provide to GLNG. OR is that a subtle threat to STO that QCLNG, APLNG, SALNG may want some gas from south of the border)

- Quality strategic partners (S2) - a backhand compliment to our Santos

- No fraccing required (S4) (The Tara Frackman wont have to visit us)

- Stacked laterals (S5) (That is really good - one pad with radial laterals in different seams )

All in all it was well done

We have been surpised to still be shareholders in 2009 and 2010 so 2011 is still open for betting.

As for the AOE similarity - we hope we dont have a Board that is as willing as the AOE one which signed off the Shell bid very quickly. We hope we have a board that can get a competitive auction underway for our jewels.

So far Santos has not been bothered much about the LNGN probably seeing it as a bridgehead to Newcastle if it eventuates and it also keeps the ESG management busy appraising up the Narrabri CSG JV resources.


I'm sure that you will be able to keep a Rationalist weather eye to the ESG future


Cheers