ep 437, page-4

Back in 2010 KEY earned 45% of this by funding 60% of two (dud) oil exploration wells. Both were quite shallow at 550 and 700 metres. this is important because the gas prone sediments are much deeper and at the time KEY was only after oil.

When EGO gave us Gulliver part of the payment to them was 22.5% of EP 437. that intrigued me.

Now EP 437 is in the North Perth basin.

The following is an AWE announcement: and it starts to say to me that KEY and EGO may be sitting on 45% of a potentially very significant unconventional gas bonanza and be player in Perth basin shale gas party



Nicto,

Your percentages have changed, it looks as though KEY now has 50% of EP437.

According to EGO's 3rd quarter report out today CalEnergy has relinquished it's interest. EGO state they now have a 50% interest and are the operator, presumably this means KEY now also has 50% interest.

I wonder if that was on the cards when EGO sold Gulliver to KEY in exchange for 52m shares in KEY plus half of KEY's interest in EP437.

CalEnergy withdrew from the EP 437 Permit with Empire being assigned a further 27.5% to a total of 50%. Empire will become the Operator.