Ann: South Block A - Seismic Update , page-6

Actually i think OXX would be an outstanding partner. It would be interesting to know what OXX mgt would have done differently over the past 3 years. OXX mgt are all action. PKO are not far off they have just been been heavily checked ( to use a horse racing term)

My concern is the merger will see both companies valued and an offer put forward and PKO is unfairly treated.
Something like what happened with JKA but in which case JKA seemed to be the benefitiary.

OXX has balance sheet current assets of around $11 million. So the cash holding of $19 m, so often referred to by HC posters, is a bit misleading. I dont have a good feel of the value of OXX prospects. It seems to be an industry in which a commercial success rate of say 1 in 7 to 12 on exploration drilling is the norm. The drilling is expensive - offshore around $1 m per day and time extensions do occur, like in OXX recent NZ exp drill.
Onshore is considerably cheaper.

So ordinarially (and with having been fried on 2 oil companies before) I dont think I would want to take up those odds again.

PKO has a proven holding in Cadloe. That is a big point of difference. Nth Sumatra seems outstanding. There was a significant nearby gas discovery last year and I did manage to speak to the Aust MD before they merged with ... company, maybe Lion. Anyway i got the distinct impression that the gas discovery was under rated. He also felt PKO nearby holding was a great one. PKO recent announcement on Nth Sumatra was outstanding.

I have tried to think from OXX pov to determine which prospect they would next ideally like to pursue and my gut feel is both PKO two holding would be 1 and 2.

I feel a bit disgruntled with OXX recent buy back announcement, more so if that occurred before the merger, as that potentially influences the sp and that may have a bearing on how many OXX shares PKO holder receive.

I understand their will be an expert involved to determine if the merger is a fair and reasonable one, but the recent trading history probably will be part of that assessment.

Thats enough for you to chew on.