agm how did it go ?, page-3

Here are some thoughts about the AGM yesterday.

3 Negatives, The two major players in the comapany Julien Moulien and Gauthier De Potter were absent from the meeting so there was no opportunity to hear from them as to how they were going to sort out the convertable notes and other issues. It also made you think that as far as they were concerned other holders do not matter. In the cold light of day we do not but it would have been nice to see the colour of the knight is he white or black?

Anthony McClure and Allen Flavelle were present at the meeting with Anthony making sure the board was put on notice about his objection at being "sacked" as a director. He argues that under Corporations Law only the shareholders can sack a director while the board contends that the articles of association state that an executive director can be sacked by the board and cease to be a director upon termination. Unfortunately it is apparent that the ex directors in my opinion were there only to maintain pressure on the board over entitlements and severances and not for any altruistic endeavours.

A third negative and a bit of a whinge the questions from some of the shareholders were shocking! They showed a total lack of understanding of what the company did or even how an AGM is to be conducted. In some ways it was probably good that the other directors were absent as such a display would only reinforce why they shouldn't bother. Sebastian Heppel did an excellent job of chairing the meeting considering the circumstances.

Positives

The convertable notes issue is being hammered out and there is a timetable for this to happen. Sebastian stated that the hope was for the issue to have been solved by the AGM but was not the case however the expectation is by the end of the month.

Speaking of timetables there is now a roadmap going forward of course at the moment it is only words on actions but you get the feeling that Julien means business. It took only two months for him to ask for Anthony's head on the block. Board meetings are typically once a month affairs so that means first month September "okay we need to start doing this,this and this" second October "Tony why hasn't this, this and this not happened----not good enough Tony there's the door".

Gazonor- the government has monitoring wells that are drilled into the mine shafts adjacent to the compression stations and pipelines and also near potential customers. (A hospital is across the road from a well that is free flowing 95% purity) The only road block appears to be government approval to change the well head to tap into the well. The additional permit Valeni.....ious (cant remember the spelling) has the permission to connect to monitoring wells attached to the permit so hopefully this will add additional pressure to the government.

Cost savings project is very timely. There was just too many overheads and I am glad to see a reduction of the number of offices. I could never understand why it is neccessary for the City office and regional offices. When you need to talk to government go to their offices everyone else is going to want to see what you are doing and that is at Nord de Calias or Lorraine.

Fols 2 well. currently testing in phase 1 meaning I believe a state of drawing down the water but not enough to create significant gas flows. It is more to do with testing permiability charaterictics which will help in modelling 3p reserves however do not expect "a number". Phase testing will be done for both upper and lower seams. After this full testing/ dewatering will be attempted and gas flows are likley sometime next year

Will post more later when I get a chance

cheers Icharus