Slide 16 of the AGM Presentation dated 271106 showed what SGL...

Slide 16 of the AGM Presentation dated 271106 showed what SGL was expecting to produce over the 18 months to 31 December 2007.

With the joint venture (SGL 50%) producing in excess of 14 Tj/day you can say that the joint venture is still on track to meet that forecast of producing 27 Tj/day by 31 December 2007. However, it is tracking the lower red line rather than the hoped for "Superior Performance" line. Hopefully, they will still achieve their forecast by the 31 Dec 2007.

Of probably greater financial impact is that they prove up 500PJ of P1 reserves at Camden by the 31 Dec 2008 so that SGL receives the additional payment of $51 M from AGL for its 50% purchase of the joint venture. Good to see that they will be taking cores in the near future.

Regards

SP