samtocanYes I did get a reply but it didn't add a lot to what we...

samtocan

Yes I did get a reply but it didn't add a lot to what we knew anyway. My understanding is that the workovers have been completed on a number of the wells at the Bibbelwindi multi-lateral pilot and dewatering has resumed (as we had mostly all assumed) on these, with performance having returned to similar levels to what has been reported previously. So as expected, what we await is for the full pilot to come online with the aid of the currently being completed shield laterals before we are likely to see gas flows ramping up.

What I am just as eagerly awaiting is the start of pumping from the Bibbelwindi West Tri-lateral Pilot which should be online as soon as flow lines are connected to the Bibbelwindi water and gas handling facilities. This pilot will add reserves above and beyond the previous expectations as there are none from the Namoi Coals being tested there in current reserves or resources.

On another topic.... thinking again about HGO's sale of its ESG shareholding, I had another look at David Archer's April 2009 presentation and it re-inforced the conclusion that he must be VERY sure of getting the top-up payment. He states that HGO's 176m shares should be valued at around $2.70 per share on recent metrics and that this equates to a value of $472m to HGO. To sell them 3 months later for $176m seems bizzare given this statement .. unless a takeover of ESG is in fact the definite game plan .. and he WAS on the ESG board at the time.

H