Ann: Response to ASX Query re Appendix 5B , page-2

I guess an inquiry by the ASX was inevitable given the cash left at the end of the quarter.Looks like KOG have got through exploration program and hook-ups by the skin of their teeth.Just as well we got that loan from Odin.Wonder what form the raising will take...maybe convertable notes as with the SP so low a cap raising would be sub 5c.Think I will be bottom drawing these for a while as the U.S gas market is not strong.Great prospects though,especially Stary and this will blossom when U.S productivity resumes