uk info for surandy & others, page-3

The good news on the UK front is that the oil price has remained above $US70 since the acquisition was finalised, in fact the price has averaged at or slightly above $US75 over the period from the finalisation of the acquisition on 30/9/09 until now.

Looking at the information given to the market around the time of the acquisition it appears to me that KEY based the value of the acquisition upon an oil price of about $US60 with a hope/expectation that the price would rise to at least $US70 in the short to medium term.

If my assumptions above are correct then the lift in oil price lifts the overall value of the UK assets and workover by $15m from the lowball figure of $US60 for oil. Assuming of course that the workover is a success.

Hopefully an updated guidance of the value of the UK assets is imminent. Given that the AGM is due to happen shortly fingers crossed we'll have some news soon. Guess I'll have to wait and see if we get our cake and get to eat it too. Let's hope the size of the cake is significant!