stand still, page-30

The current slump in the sp can be very testing for us investors. I have certainly questioned my investment as I am sure most others have.

We have been used to a Marion full of leaks and speculation, now we have a locked down sales process with no leaks. I suppose GS's reputation is at stake re doing a clean deal. One thing for sure though, if they are still negotiating there must be more than one bidder.

We know they have 139bcf of 1P, which historically sold for US$4 mcf. Even if Marion only got US$2 per mcf, thats A$347, take out the $50m debt, add back in the $15ish million they'll get for all the options, then divide by about 400m bits of paper, you get about 78c per share. Take off 5% for GS and we're left with about 74c.

I think this is a very conservative minimum price. I'm throwing in the 2P & 3P for free, not to mention the 32tcf resource of which about 2.4 - 4.3tcf is recoverable.

Personally I think GS will get much more than this, but the above figures make me sleep better at night. Do I think the Directors will exercise their options? Of course they will. That is what they're in it for. Unfortunately we probably wont know till the beginning of July, getting close to the Fortis due date again.....more nail biting.

On the Fortis subject, they actually have more options than I thought.
7,000,000 30c 18/9/12 issued 2/3/09
1,500,000 90c 14/11/11 as per rolling credit facility issued 2/3/09
1,000,000 70c 14/11/011. for entering 20m revolving credit issued 27/11/06

They have quite an investment in Marion & I somehow think even the 90c options will be valuable.