rj stays., page-4

Gassed you say:
RJ has stated categorically that he will not drill without a sale contract or an agreement in conjunction with exploration. It is in white on green on pages 2 and 3 of the AR for ALL to see.
He is doing the complete opposite to the likes of BOW who are drilling and hoping to sell, instead he is trying to sell THEN drill. He goes on to say the investment in drilling CANNOT BE JUSTIFIED without a market!!!

I say:
If this is RJs actual position, he should definitely be removed. Gas sales agreements - not MOUs - with real prices and real volumes do not get signed without reserves. Further, without 2P reserves there are no assets to collaterise access to additional finance for field development. CBM is a capital intensive business with huge investments of capital years prior to sales being achieved. Constantly and incrementally adding to 2P reserves is the only way to get constant capital injection of capital needed to reach profitable economies of scale.

I would characterize Icon's strategy so far as trying to get other people to undertake the real business of CBM certification whilst being preoccupied with wheeling and dealing (MOUs, positioning for a possible shale boom). These activities are not without merit, but should not be the top priority...at least while we still have some money in the bank (i.e. before its burnt up by admin costs).