unloved and undervalued, page-8

Early days wrt diesel, but given the cost of transport (or Santos tolling extortion) to refineries in Melbourne, plus diesel freight back into the region, plus refinery margins being currently high, there can't be a much better time or place for a diesel topper.

I am holding a small parcel bought in 2003, and will probably hold through 2006 drilling program then re-evaluate. I fear they"ll have drilled out all there decent prospects within 12 months, putting a cap on longterm growth, however if they can successfully develop their technical skills there will be a good a role for them in the inevitable Cooper basin consolidation. Also gas should take them forward if the develop the necessary low cost model, their own infrastructure and techniical competencies as ARQ have done.

A safe but relatively unexciting (hey they are from Adelaide) play IMO.

They are a real serious "production" company, with reasonable oil exploration prospects. Important to remember that the Cooper is a "gas basin", but with current disjoint between gas and oil price in Aus they are cherry picking the oil.

If they get the model right I reckon we can expect total annual returns in the vicinity of 50% for a few more years.

PS I am also dissapointed with their use of OIP vs recoverable oil. I expect clarity of definitions from professionals.

Entropylord