smolik a3, page-2

Gday Oz

Director Peter Lehle spoke extensively about Smolik well and Halletsville( in general)at the AGM last year. The AGM presentations contain some technical info for those that are interested. For mine, it is very worthwhile attending the AGM's to hear the technical guys speak and get a feel for their level of enthusiasm.

Needless to say that Peter is a very entertaining speaker and it is clear that the man lives and breathes oil and gas.

Smolik a3 is located very near the Garner 1 well which successfully intersected 3 seperate pay zones and i note is located within distance of AMU owned sales pipes for quick tie in.

Smolik is targeting the 3 sands intersected by the Garner well and an additional 2 zones identified by siesmic, one of which looks to be the thick sands encountered in the Wolf Cowling A2 well.

Smolik is part of a 3 well programme at Halletsville targeting high impact structures.

AMU does seem quite confident on this well, Peter Lehle was certainly very excited about the Halletsville drilling, they have learned a lot from previous exploration here and their understanding of the structures is greatly enhanced by previous efforts.

I rate them for a discovery here and as you rightly point out potential gross reserves are equivalent to around 1/3 of current MC.