Core Hole 3 -Notice of Commencement

21 May, 2007



















A hand-delivered, un-addressed letters in SGL company envelopes from Mr. Scott Black, Sydney Gas LTD, appeared in some mailboxes in Bulga on Tuesday 22 May, 2007. The letter announced that the drilling ring operations will commence on Wednesday, 30 May, 2007. A copy of the original letter in PDF format can be downloaded here. The text of the letter, as translated from the image by OCR software, goes as follows:

Our ref: SB210507

21 May 2007

Information Notice To The Resident/s

Core hole Drilling Activity - 329 Inlet Road Bulga

Dear Sir / Madam,
Sydney Gas is undertaking an initial exploration program that aims to assist in quantifying any available gas reserves that might exist in the Bulga area of the Hunter Valley.

A core hole drilling rig will be arriving at the abovementioned property to commence core hole drilling activities on the 30t" May 2007. The activity is expected to take between four and six weeks to complete.

The operations of the activity are limited to the hours as follows:
1) 7:00 am to 6:00 pm Mon - Fri and
2) 8:00 am to 1:00 pm Saturday

Sydney Gas wishes to inform residents that it will be commencing operations at 8:00 am Mon - Fri in consideration of local residents.

Please contact the writer on the number provided below if you wish to further discuss this matter.

Yours sincerely

Scott Black

Project Manager Hunter

9253 5555


H:\hunter project\public notices and Ietters\Electronic Letter notice of commencement Bulga may