responce to emails questions

heres some answers from kenny

Short questions long answers!

Hope you don't mind. PEL105 - As you know Adelaide Energy is the designated operator of thislicense area. Last year we renegotiated a new structure with ADE thatbasically transformed the previous farmin agreement into a joint ventureagreement. That change called for new financial terms for the transaction with the focus being on upfront cash to Austin in exchangefor the right for ADE to earn their 50% interest prior to drilling thefirst well. As operator ADE is responsible for updating the market andwe will usually follow. The most recent ADE update stated the following"The Company continues to plan for the drilling of Pirie-1 as operator.There has been a delay in the timing for the commencement of the welldue to a drilling rig supply problem in the Cooper Basin. The Company isnow aiming to spud the well prior to the end of second quarter 2010.Hydrocarbon shows over the Tirrawarra Sandstone section down toapproximate structural spill suggest a P10 potential of over 20 millionbarrels of oil in place." So basically they are trying to coordinatethe rig delivery. I'd bet that the recent floods in the Cooper areimpacting that scheduling significantly. Newtak payment - Although this issue is being handled out of ourAustralian office I'd be happy to tell you what I know.
Last Novemberthe company issued a supplemental to the rights issue prospectus thatstated the Directors intend to convene an Extraordinary General Meetingto seek shareholder approval for this payment. There was supportdetail in the original prospectus for a cash portion and a shareportion. On December 10th the company released a response to a seriesof questions raised by the ASX that were related to the supplemental.I'm not aware that the status has changed.
Park City - The Atmos situation is unpredictable because it is totallyout of our control and will not reach a conclusion until a lawsuitbetween the Atmos companies and several land owners in the ParkCity/Glasgow area is resolved. Although our company nor any of theproperty owners that we maintain mineral rights agreements with areinvolved in the lawsuit, we are all negatively impacted from it. No oneis selling gas! Please also keep in mind that there are over 100 wellsin the Park City/ Glasgow area that are impacted by the plant beingdown. We are just one small part of that base and thankfully we arenot in the lawsuit. The old operator, RET is involved in the lawsuit.Our 2009 settlement with RET occurred just in time to keep our wells andleases out of the current litigation. We were very fortunate. Here is a bit more background detail; The Atmos plant is fullyoperational and has been for several months, however, it will not bebrought back online until a resolution has been reached between thelitigating parties. One of the litigating parties in the land ownergroup has family ties to an individual now running for the US Senaterepresenting the State of Kentucky. We are hopeful that a resolution will be found any day and our company will be ready when that occurs,however, a resolution is not something that we can control. Atmoscontinues to tell us that they expect a resolution soon, however, theyhave been communicating that same message for several months now.Atmos is a massive company here in the U.S.A. and not required to reportdetails on a matter that reflects such a small portion of its overallholdings footprint. You will find references in their 10K and 10Qfilings mentioning "other litigation", but not much more. I'd encourage you to use your normal sleuthing talent to do a littleresearch on the matter. Here is a bit of information to help get youstarted. There are two Atmos companies involved. The Atmos GatheringCompany and Atmos Energy Marketing. The proper company websites canbe found at this address Cheers, Kenny Hill512-423-2547

what do u think

Eamon