report, page-18

re: cs energy make $2.5 mill and get the hell out No I don't because as you say they are getting better results, but my worry is they just spent $7.5 million on a non producing asset and have no money to develop. It's not like people are throwing money at them because they did a raising at a huge discount to market to create interest. So what happens when the money runs out? Another raising? The market will only cop so much and as I don't believe income of any decent scale is due for at least a couple of years the company is still to immature to justify the attention it is currently receiving.

I don't know the extent of the sell off and I could be wrong about it but there are no fundamentals to support the company at the moment. I think in 12-18 months some gig questions will be asked of all CBM players about the things they are reporting, and what they deliver. Some of the costsas a ratio of production returns I'm seeing can never be sustained no matter how many wells they drill.