world class resource third world price, page-8

Hi HM,

Equally baffled by the current metric for this deal.

Chk out this matrix that I posted back in March 2010.

What's changed since then, as far as reserves go!!

Cash on hand in March was $92.49m minus $14.6m outflow for Q2-2011. Net 2P still 988 & 3P-1818 PJ.

Casey is on record in his ASX update on 25/5/11 abt a reserves update is due in August page 2, last line, so I'd think 50c-3P (ESG's net 65% is still 3P-1818 PJ) or 93.5c/sh-2P (ie $924/988m) appears low ball, IMHO.

Or mayb STO couldnt b bothered waiting for the conversion of the contingent resource 2C & 3C to actual reserves & thought now was a good time to get the ball rolling on this one.

One would have thought that DC & Co. always aspired 2b a billion dollar company !! Oh well, STO still has some time to chew over this, they got themselves an ally in TRUenergy, just like Petronas & Total are key strategic partners at GLNG.

My 2c's worth dilemma though was or still is r AGK really asleep or is the answer to that is just blowing in the wind, after the recent carbon tax hooha in the media.

I mean they r sitting in 2P-2029 PJ & 3P-3509 PJ most of which r in QLD & with acq's of Sydney gas & Molopo, wonder what's stopping them, all in my humble opinion.

Dont think this is over yet, not till I see the Independent reserves report.

cheers