In my last “message” I documented a number of initiatives, which I believe signal a new phase in the development of the Oil Mallee Industry. I also flagged my concerns that, despite the progress we have made on a number of fronts, we were also vulnerable if we did not address some key issues.

One of our key assets is our intellectual property. I am confident that we are continuing to develop our technical capacity to a stage where we are able to handle a major expansion of mallee plantings.

We do, however, need to continue to increase our investment in key areas. In particular, the development of uses and markets for eucalyptus oil is a major priority. Over the next several months Professor Allan Barton will take up residence at Notre Dame University during his sabbatical leave. While he is at Notre Dame he will be concentrating on the development of uses and markets for eucalyptus oil.

A postgraduate student, Ms Robyn Bell, has also been awarded a scholarship at Notre Dame and she has commenced research into the factors which control germination of mallee seedlings. I am optimistic that we will be able to attract funds which will result in more postgraduate students undertaking research projects related to the oil mallee industry.

One of our major vulnerabilities is the lack of capital funds which are necessary to increase the scale of planting, develop the prototype harvester and still, increase our knowledge of factors effecting the growth and development of mallee and to investigate the potential to develop more commercial products from mallee biomass.

Over the past several weeks the Company has been working on two initiatives which are aimed at alleviating our funding problems.

Firstly, an Offer Information Statement has been prepared and submitted to the Australian Securities and Investment Commission. This initiative is aimed at raising $5 million dollars from the community, which will primarily be used to provide the funding for research to increase our intellectual property. Marketing of the OIS will commence in July. It can be accessed from the oil mallee website. The proposal is aimed primarily at farmers who have been involved or who are interested in participating in the industry, and small investors in the community who are interested in investing in projects that have positive environmental benefits.

Secondly, the company has completed a feasibility study, which was commissioned by a large overseas power company who has indicated that they have an interest in investing in the oil mallee industry.

The company is in the process of finalising an agreement with Metasource (a subsidiary of Woodside Energy Ltd.), which will result in the commitment of funds to develop the prototype mallee harvester.