question, page-11

No question in my mind, this will trade sideways or even a touch lower in the absence of price sensitive news.

UK:

Money coming in but not enough to quite cover KEY's total admin costs, this really rests on successful workover of the assets without a blowout in costs.

Italy:

The tone about the onshore assets are not looking promising and given the licence is due to expire on 26/11/09 I think the next news about this will be negative.

Offshore? News has been imminent for how long? There's been some noise from West Sardinia but that noise suggests to me that the environmentalists and their ilk will oppose any development. Elba South? No idea. Lampudesa? Looks good but definitely will require farming this out.

Tanzania:

Nyuni block: I think this might be where the placement funds may be needed, funding KEY's share of two wells for the Nyuni block due for drilling within the next roughly 18 months. Preferably funding to get KN#1 into production so we get some cashflow.

West Songo Songo: Don't think this will be drilled too soon, possibly immediately following drilling of Nyuni block.

Suriname:

Whilst we are free carried it's a very minor interest and I can't see sales any time soon. The fields are controlled by Staatsoile (sp?) who have stated that their intention at this stage is to prove up reserves, no increase in production above what is currently coming from their existing fields.


Besides news from left field the only thing I can see moving the share price before the UK workover would be confirmation of reserves of the Kiliwani North gas field and/or clear indication of definite progress on the commercialisation of KN#1.

I think it'll be cat and mouse between buyers and sellers over the next two or so months. I will follow this one closely (like I don't already lol) and may even look to pick up more under 10 cents.