very disappointing, page-11

Mr Perry

The STO preso says $0.50/GJ of 3P. that's current 3P though!!!!!!!!!! Its about $1.00 or just under on current 2P of 988 PJ. In the ball-park .. but if reserves can be upgraded substantially you would expect a higher offer surely?

Maybe ESG had only 2 choices .. an agreed bid which opens them into play .. or a hostile bid. Unless there's lots of bad news out there related to the upgrade or approvals etc then why do this though? What about the feasibilty study on LNGN anf FEED ... don't the outcomes there potentiall add much more value in terms of a market for our gas?

Can't really figure out why ESG management has agreed to this bid. Main explanation may be the difficulty of funding as was the case for AOE.

H