Ann: Operational Update - Myall Creek Well 5A, page-6

Thanks frmen, nice to be back !   Like SEMS I was pretty cheesed off with the Cap Raise, especially as the Company had said it was highly unlikely that they would need to do a CR, and then they did it.  That said, it is done now, and I'm focussing on the positives.  Armour is getting on with drilling as they should be.  I was delighted to read the STO view of the prospectivity of the region, as we discussed recently in another thread.... they have a tenement just next door to us.

Great question, I would like to wait until the next quarterly to give an answer, and I will have a really good look at it then.  I want to better understand costs, that is the key question for Armour.  It is possible they could be profitable just producing a few more T J/d than they do now, but the costs / expenses have been all over the place, and I would like to see this settle down a bit, as obviously costs are half of the P & L equation.

Also, just playing devils advocate, Armour could produce 10 times what they do now and still incur a loss if they start building the expensive infrastructure in FNQ.   That is why I am calling on them to focus soley on the Surat for a few years, and I think it will be a really, really good story and very rewarding for Shareholders if they do that.

For me (and the Company Reports) at the moment it is all about containing costs !  This can be hard to do when in the middle of a planned drilling program, but my understanding is we are fully funded for the current program, which again is good news.

GLTH