Ezi,If ESG was an ORG or an AGK or a STO with multiiple channels...

Ezi,

If ESG was an ORG or an AGK or a STO with multiiple channels to market then maybe an upgrade of some resources to "P" wouldnt be so MOU dependent. STO having 20.97%+ of ESG and 35% of the JV may be looked on kindly by the certifiers as STO could help ESG get its gas to a Market.

DC from the very start realised that as he had a Stranded Gas resource with no pipelines to Market that the MOU would be a useful tool to prove that he had some Commercial connections that would support some field development and a pipeline. He understood how the Certifiers think so he established a Shell for them to justify Reserves upon.

If you were a Certifier Im sure you would ask:

1. What is the currency of the 3 quantitative MOUs on which you base your current 2P ?
I have listed them from the Oldest to the Newest:-

1. 13/3/07 , GGJV & Macquarie Generation(NSW Govt owned), Bayswater Power Station, ?PJpa, ? yrs, Total = 500PJ

2. 12/8/10 MOU assigned to N.P Power Ltd as BB defunct First setup 12/11/07, GGJV - Babcock & Brown, power station Nthn NSW yet to be developed ?, 40PJpa, ? yrs - assume 20, Total = 800PJ

3. 14/5/10 ,ESG - ERM Power , Wellington Power Station, start 2013, 20PJpa, 20yrs ,Total = 400PJ

Grand Total = 1700PJ

Do any of the above have a Probability of proceeding less than 50% ?

Why has not even one of the above progressed to a GSA ?

From the DC commentary he only ever mentions ERM (No 3) so are Nos 1&2 just Improbable?

If Improbable then how can 2P be based around them, so Remove 1300PJ from 2P Support Duty leaving 400PJ only - your ERM .

Without that the Total = Zero.

Now if the Certifiers make similar conclusions what would the above subtractions do to the current 2P of 1520PJ for the JV? It doesnt matter how Fast the gas can come out of the holes it Needs a Market for "P".

The other Commerciality option the LNGN has gone very quiet. Nothing has been heard of Marubeni. If ESG had News about Marubeni we would know about it considering the Glee with which they have announced in the past.

Santos needs to come to the Rescue.

If the Great and the Good that the BlueSky Crew preach was close to the truth how come the Market cant see it. Why is the sp at 57cps ?

Let us look forward to some information about Tintsfield this week with the Monthly Drilling report on 1/7/11.

You are prescient about 2012. It will be a big year.But every year since 2009 has been a big year and still we look as though the 2011 AGM will still be convened.


Cheers