Ann: Appointment of Joint Company Secretary, page-5

i think the idea of selling a potential well outcome to the level that SGC has, will have its impact on those SGC investors, whom thought that what was likely to happen.

Inevitably, when the very best scenario that is reported, fails to eventuate, your market is going to rate your performance accordingly, and equally your credibility. Being frugal and conservative in likely outcomes can be a better strategy, it can cause far less downside in the case of a highly likely failure to perform. How many wildcat exploration wells have given up a result of 100% perfect gas saturation in rock at optimum permeability and porosity and perfect pressure environments? probably less that 1%. So the longshot that has been called on Dempsey of a prefect outcome is now coming home to roost for those bold enough to call it that way.

Obviously the xstate management never believed the SGC outcome, and only every posted up anything SGC reported as required by the ASX rules, but never added a single comment in support of the SGC projections, never announced their own geological analysis or conclusions.

SGCs recent announcement imho is exactly in line with many peoples own geological views that were simply not given permission to be aired publicly.

For the partners that heavily promoted the potential of dempsey and raised capital on those expectations, their credibility would also be in question for not just the Californian assets but any other assets they would have promoted.. imho their valuations will suffer accordingly.