ggx circulation of materials to shareholders, page-2

from esgbi monthly of 15 Jan.

Objective:
Gwydir 1 is the third and final well to be drilled as part of the Stage 1 farmin program into the
PEL 6, 427 and 428. Following the drilling of this well Eastern Star Gas will complete the Stage 1
farmin and have earned a 50%, 50% and 40% interest in the CSG rights of the three licences
respectively. Gwydir 1 is the first CSG well to be drilled in PEL 6 and is designed as a
reconnaissance exploration well to determine the CSG characteristics of coals within the Triassic
Moolayember Formation.
Well Status/Results:
As at this report date, Gwydir 1 has reached a total depth of 814.0m after intersecting a total of
4.0m of coal in the Moolayember Formation. The well has been plugged and abandoned.
The well has confirmed the presence of the Moolayember play across the extent of PEL 6 and
provides critical control to locate follow-up wells to target this play in areas where thicker coal
development is known to occur.