time for some news, page-2

Hello Peter

Short-term Kyrgyz results would be nice - we know Dr Beardsmore has been on site, and has compiled a report outlining a more accurate assessment of the thermal gradient and lithology of the site.

Further news will be an indication of priority targets for L.C drilling, and possible acquisition of a rig or JV partner. I know both are on the agenda, and that De Graaf has been scouting out potential candidates (both mechanical and corporate).

Any information flowing out of the Puga region would be welcomed by the market, and a more in-depth analysis of the role of the geosyndicate would help the SP greatly.

The roadshow really is critical. Investor and broker awareness of PAX is lower than I would have thought possible! This is understandable consiering the nature and timing of the transition, but I think management have been VERY lax to not get the website up and running by now, at least with a basic history lesson on Bertus and Kerry, and a preliminary review of the project potentials. It is understandable that much of the available data is either anecdotal or too preliminary, but the L.C project is very well understood, very low risk, very high profit, and readily developed. Surely a quick summary on the site would not be beyond the team?

Personally I expect the roadshow will take a few more weeks before it is held, as they seemed rather vague about a date when queried recently. A wildcard will be the JV/rig, and I would expect news on this front within the near future (just a guess based on the history of the folks in charge, and taking into consideration the fact that they have been shopping around....)

News on any advancement with any development bank (including the World Bank) would not be surprising in the least, and, as I understand it, De Graaf has been in contact with one or more of these organisations.

From a technical standpoint, and taking proximity to grid and development risk into account, the L.C project is by far the most economically attractive Australian project outside of the Cooper Basin. It will operate as a conventional project in a region where the permeability is fully understood, and drilling to the required depths is a routine event. Short-term I will be watching the top20 (when they get the site up and running), because the merits of the L.C project will not remain so hushed for long.

Add to that the enormous, unparalleled potential of Puga, Kyrgyz and the Krishna Basin projects, and it won't be long before we start seeing 'change in substantial holdings' notices from the majors.

And we are also awaiting news on the re-instatement of the REDI grant, which will be a welcome addition to the $4M that has already been spent to make L.C such an advanced (yet frustratingly underpublicised) project.

Based on current information, PAX should readily outperform HRL, PTR, GHT, GRK, TEY and KEN, considering it has far more economically attractive projects that can be developed at significantly less risk - even lower than PTRs HEWI model.

Now bring on the bloody roadshow!