ACTIVITY REPORTSECOND QUARTER TO 31 DECEMBER 2007QUARTER...

ACTIVITY REPORT
SECOND QUARTER TO 31 DECEMBER 2007

QUARTER HIGHLIGHTS
Gas sales volume this quarter was 23% higher than the comparable period in 2006/07.
EM38 which started producing on 19 December 2007 recorded instantaneous flow rate of 1,250 Mscfd during this quarter.

PRODUCTION & SALES
Production and sales from the Camden Gas Project with JV Partner, AGL continued during the quarter.
Production (SGL Interest: 50%)
�� EM38 was the best Surface to In Seam (SIS) well this quarter producing above 900 GJ per day.
�� GL06 delivered the highest individual vertical well production of 800 GJ per day during the quarter.

Sales
�� Total sales volume (i.e. 100%) from Rosalind Park Gas Plant (RPGP) wells during the quarter was 1,307,787 GJ (1,307.787 TJ).
�� SGL’s share of total gas sales for the quarter was $2.16 million.

DRILLING
�� During this quarter, 2 In-seam wells were drilled in the Bulli seam. Well MP30 was drilled 1,850m in-seam. Well EM38 was drilled 2,600m in-seam.

Looks good, why is the SP so low?
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