upside in esg/oip leases, page-4

WC

Yes ... the 2 wells so far found Walloon equivalent Coreena coals to be gassy (a prime prerequisite for csg that they needed to determine), they are 40 km apart and have the same coal seam, and ... they know there are deeper coals. Several of these deeper coals are being tested at the 2 PEL 6 sites to be drilled over coming months and these include the Maules Creek coals (Bohena) that are the same as those in PEL 238 .. so they are low risk.

My deduction from the above is that drilling to date has increased the upside of these leases and successs in PEL will confirm this. OIP's retained equity in PEL 6 is 45% which will add to the upside on success.

H