stock price, page-14

6ULDV8,

I assume I will not have to explain the significance of Yulleroo-2 testing with successful well completion just announced at an existing discovery interpreted to host up to 50mmboe + ~ 0.8Tcf of gas!

They are currently drilling Paradise-1, and only ~400m above an expected oil bearing (Anderson) zone with mapped resources of 16mmbo, they encounter oil over what appears to be a ~200m zone. This zone is unlikely to be entirely all oil-bearing, and infact the oil shows at depth may be coming from the shallower Grant group. But the fact that they have significant oil shows this close to a decent sized target is very encouraging.

The deeper 200bcf Laurel gas target is also potentially very significant, but if you ignore this, and just value the oil here.

16mmbo x 60% = 9.6mmbo. At US$10/bbl, this would underwrite the entire value of the company.

Nothing is certain, but having oil, gas, Mitsubishi on board, an active drilling program and cash, are a good place to start. Whether it is next week or next month or next quarter, my view is that we will be seeing the other side of a dollar. From here that is not a bad return, if we can get it.

My colleague attended the AGM and had some juicy details. But over and out for now.