spud early next week, page-15

I had a was told by somebody who had a recent presentation from the MD that they raised the extra funds so that they would have the available funds to drill and test both the West Seahorse and Wardie wells. Prior to the raising they had enough to drill both and test one so management thought it prudent to have available funds so they could do both if results from the first well were less than expected. I think the all in day rate for the well is $650,000, not cheap if things go a little wrong and they take an extra week to drill and test a well.

I dont particularly agree that 52 cents was the best price that could have been obtained but a good chunk of the stock went to some of the long standing insto shareholders who have shown their patience and willingness to buy in the market.

I think the West Seahorse prospect is probably a 80-90% chance of success, the key here is the extensive mapping undertaken over the last 3-4 years and the company's interpretation that the last well drilled was on the flank of the field. If this is true and they are now drilling into the attic position i.e. most optimal structurally, then the result should be a great one.

This could be a bolter over the next 3 months, $2 - $3 is not out of the question.