This is Mr Lincoln Augustus, first second cousin of...

This is Mr Lincoln Augustus, first second cousin of Holymagiman.

I have looked through some back files with regards to the oil exploration plans by Sapex, and I draw your attention to this news clipping in PetroleumNews.net on 26th March 2007.

I have marked in capitals what I consider very important in this report. This report shows the company direction at the time of the float. What has changed so suddenly in the last few weeks, and if petroleum was not an important target, why has the company wasted money doing the seismologic survey.

The survey has been done but Mr Andrewjewski states in a report to the Stock Exchange on 2nd June that there is a six week interruption in the survey program.

This interruption COMES AT A VERY CONVENIENT TIME for anyone who does not want the seismologic studies to be released to th market prior to this unwanted takeover.

FOR IMMEDIATE RELEASE
• SAPEX SEISMIC SURVEY UPDATE ON ARCKARINGA PROJECT
• APPOINTMENT OF EXPLORATION MANAGER.
SAPEX Limited (ASX: “SXP”) provides the following update on its Boorthanna
seismic survey on the Company’s Arckaringa Basin prospects in South Australia and
also advises the appointment of Mr Jagathas Paran as Exploration Manager.
1. PROGRESS ON BOORTHANNA 2008 SEISMIC SURVEY
The detail survey portion of the program was completed for a total of 236 km on June 1, 2008. This data will now be processed over the coming 3-4 months and will be used to provide the information to determine locations for the
drilling campaign targeted for around year end 2008.

At this time THE SURVEY PROGRAM WILL BE INTERRUPTED FOR SOME SIX WEEKS AND RESUME FOR THE COMPLETION OF THE REGIONAL PART OF THE PROGRAM EXPECTED TO COMMENCE ABOUT MID-JULY. This interruption will not affect the work on determining drilling locations.

The Boorthanna 2008 Seismic Survey, being undertaken by Terrex Seismic, is the most detailed oil and gas exploration activity to be undertaken in some 25 years on the Arckaringa Basin region.


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HOLYMAGIMAN'S THOUGHTS:

IT APPEARS TO ME THAT THE SIX WEEK DELAY COMES AT A MOST CONVENIENT TIME FOR THE COMPANY TO GIVE US THE EXCUSE THAT THE SEISMOLOGIC RESULTS WERE NOT FULLY COMPLETED, AND THAT IT IS NOT THE BOARD'S POLICY TO RELEASE HALF COMPLETED SEISMOLOGIC SURVEY REPORTS TO SMALL TIME SHAREHOLDERS.

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Here is the PetroleumNews.net article:

Second shot for SAPEX
Steve Rotherham
Monday, 26 March 2007
OUTBACK oil and gas explorer SAPEX (South Australia Petroleum Exploration) is coming back for a second try at an initial public offering. The junior aims to raise $12 million in a float on the Australian Stock Exchange, and is offering 60 million new ordinary shares at 20c each, with free options on a one-for-two basis.


The options will be exercisable at 25c on or before
January 31, 2012. Another 40 million shares will be
issued to SAPEX's founders, seed capitalists and directors.

The IPO opens on April 2 and closes on April 30. SAPEX
expects to list around May 11. The company first moved to float late last year, but hold ups with Australian Securities and Investment Commission approvals meant the prospectus would not have been released until just before Christmas, so the start-up decided to delay the IPO until early this year.

Unfortunately, this meant launching into a more difficult
market, SAPEX managing director Andrew Andrejewskis
told PetroleumNews.net. "Market conditions have changed over the past few months and we are now aiming to raise $12 million rather than the $15 million target we set last year," he said.

This means initially drilling two wells rather than two to
four holes as previously planned, but otherwise SAPEX's
exploration plans remained unchanged, he said. SAPEX has seven petroleum exploration licences covering about 65,000 square kilometres – essentially the entire prospective area of the virtually unexplored Arckaringa Basin in northcentral
South Australia.

The company says THIS BASIN HAS THE POTENTIAL FOR SIGNIFICANT OIL AND CONVENTIONAL GAS DISCOVERIES as well as coal seam methane potential from known subbituminous
coal deposits.

According to Andrejewskis, the Arckaringa's GEOLOGY IS ANALOGOUS TO THE COOPER BASIN, AUSTRALIA'S MOST PROLIFIC ONSHORE OIL AND GAS PROVINCE, BUT POST -TRIASSIC UPLIFT MEANT MOST OF THE TARGETS WERE SHALLOWER THAN IN THE COOPER

Therefore, reduced pressure meant the large but relatively shallow structures targeted by SAPEX were less likely to hold large amounts of gas, but THE BASIN WAS HIGHLY PROSPECTIVE FOR OIL AND CSM, HE SAID.

"The area has been assessed by previous explorers to have OIL POTENTIAL OF MORE THAN 900 MILLION BARRELS before considering the associated risk factors,"


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(Holymagiman draws your attention to this:

Andrew Andrewjewski says that the area has less likelihood of having gas than the Cooper Basin but THE BASIN WAS HIGHLY PROSPECTIVE FOR OIL AND CSM ....900 MILLION BARRELS OF OIL!!!

HOLIMAGIMAN FEARS THAT SAPEX SHAREHOLDERS ARE NOT BEING FULLY INFORMED....WHAT ARE THE RESULTS OF THE JUST COMPLETED SEISMOLOGIC STUDY AND WHY ARE THEY NOT BEING RELEASED??
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SAPEX also holds two coal mining exploration licences within the Arckaringa licence areas as well as the PEL 120 lease near Adelaide, which also is expected to have CSM potential.
The company is in discussions with various parties over how this coal can be commercialised, but its key priority is to begin exploring for oil deposits and to undertake a thorough appraisal of the Arckaringa Basin's CSM.


SECONDARY PRIORITIES included appraisal of the CSM potential of PEL 120 near Adelaide, and investigation of coal commercialisation and coal-to-liquids feasibility in the two Arckaringa mining licences.

Andrejewskis is a geologist who has HEADED RESOURCE SECTOR DEPARTMENTS in SA and the Northern Territory.