UNCONVENTIONAL OIL AND GAS ACTIVITIES

Coal Seam Gas appraisal drilling continued within PEP 38219 (Kaitangata), located 60km south of Dunedin, during the quarter with the drilling of the Washpool-1 well. Washpool-1, located approximately 2.5km to the North West of Wangaloa-1 reached a final total depth of 536m after intersecting some relatively thin coal seams which were unsuitable for further testing.

CORPORATE

As previously announced, the company secured A$5 million in interim funding from the Chairman, Mr Geoff Loudon, to enable it to progress with its exploration commitments and pursue near term growth opportunities.

At the end of the quarter the company had NZ$ 6.842 million dollars of cash available to undertake its work programmes.