After last placement SGL EV =402.5M Shares x 0.24 per share =...

After last placement SGL EV =


402.5M Shares x 0.24 per share = $96.6 M

Less:

Cash on Hand 31/12/07 $9.4M
Placement Proceeds $17.9M
Convertable Notes ($15.6M)

Enterprise Value $84.9M

Convertable Notes are convertable to shares at $0.425. Therefore, have treat as loan when share price at $0.24.

Between 21/11/07 and 25/01/08, AJL purchased on-market 9.2M shares for an average cost of $0.35. Subscribed for anadditional 52.5M @ $$0.34 per share.

At $0.24, shares are trading at a 30% discount.

Potentially, SGL can earn up to an additional $50M from the sale to AGL of 50% of Camden two and half years ago if they revise the P1 reserves at Camden up by 500PJ by 31/12/08. While time is running out on the reserve revision, I would hope they are trying to maximise this entitlement.

Regards

SP

Regards

SP