aquisition target, page-15

Leo3

"The report is very detailed and conservative but
says that ADE is an aquisition target for domestic and foreign companies because of the growing interest in Australian shale gas"

I stated a while back that a de-risked 218/855 would make ADE a target from a numbers perspective (excluding strategic fit, etc.).

Buying ADE for only $200 million (4 times current MC) would effectively be buying a **de-risked** 218/855 for one sixth of its relative market value.

Then add back the other tenements, value opportunities, etc. which would either be divested or commercialised depending on the buyers strategic fit, and ADE becomes a very attractive target.

It's all about timing, fit and asset value. Assuming all goes well with stage one fracking, then the pilot well may prove to be the catalyst to commercialisation or a sale of either the asset or entire company. Either way the value proposition is great!

Carl should time his return perfectly. He is due back from London on the 6th June, which should coincide nicely with the completion of Holdfast 1 fracking and hopefully good news for all and one step closer to our collective goals.