solid quarterly report is out, page-6

Savagegarden,

The 2,224 BCF on the AGM Presentation only refers t SGL's share of GIP at Camden, Hunter and Merriwa which equate to an area of only 900 square km (Slide 19). Slide 7 shows that SGL's joint venture exploration area covers 23,731 square km.

I refer you to SGL website which discusses this total area:

http://www.sydneygas.com/content.php/2.html

And copy the following section on the total resource:

"Total Resource

The Joint Venture estimates that there are around 63 TCF of gas-in-place within its Sydney Basin acreage.

Recovery factors of 90% have been seen in some high permeability gas fields in the US. For planning purposes, however, Sydney Gas has assumed a conservative gas recovery rate of 63%, which was provided by Cawley Gillespie in their Reserves Report of 2004. Even using these assumed recovery factors, potential gas recovery is significant and ranges from 19 TCF to 32 TCF, provided that the geological model is consistent across the Sydney Basin.

If so, this could satisfy Sydney's gas requirements for over 100 years at the current rate of consumption.

Although the area of the Camden Gas Project is a small part of the Joint Ventures total holdings, if successfully developed within the next 3 to 4 years, this Project alone has the potential to provide approximately 30 petajoules (PJ) of gas per year (based on the assumed recovery rate described above). The Hunter Gas Projects could add another 20-30 PJ of production per annum given the thicker coal seams of those areas and the good gas contents.

This is a significant percentage, given that New South Wales' total gas consumption, imported from other States, is in the order of 150 PJ per year."


Regards

SP