Ann: Results of Annual General Meeting, page-3

Well interesting times for WBE.

I went to the AGM today and it was very interesting.

Messina repeated in his presentation that the Kockatea shale is an effective seal. On reflection I think this was the most important idea to come from the meeting. The Kockatea Shale was the seal for the cliffhead discovery and that was 15 kms from Xanadu. No seal equals no oil. We have seal.

Youall are going to be disappointed by the timelines. Yes we are going to do a 3D seismic as soon as possible, maybe done by March/April. Expect two months too analyse the produced data.
Then planning for where to drill Xanadu 2.

And then always there are government regulations and permits to obtain etc, etc.

There should be news after the analysing the seismic as they will have a picture of the strata.

Late 2017 at the earliest for drilling.

The good news is Canada.

Oil production is profitable at $40 bucks a barrel. The crew have been buying up leases (oil and gas) at very good prices and drilling costs are one third of Australian cost. In Australia the cost of the regulations and the resulting delays pretty well doubles the cost of drilling.

The JV owns a gas facility which means they can buy up leases that have producing gas and/or oil wells but are shut in because the owners can.t physical sell the gas.

I asked when WBE will be cash positive in Canada, Messina thinks by Christmas they should be in that situation.

A funny thing is that the Canadian winter is when all the action happens, as the ground is frozen and the drillers and other workers can access the wells, summer is wet and boggy. So expect a lot of new oil and gas connections in the next several months.

I think the money raised will mostly go to investing in more Canadian leases.

Patience needed.

Saltbus