It pains me to read in the Aminex Presentation that the next...

It pains me to read in the Aminex Presentation that the next wells in Nyuni (two well) and West Songo Songo (one well) will not be drilled until 2011.

Apart from putting Kiliwani North 1 on tap down the track KEY have no income for the immediate future.

Even if KEY is fortunate to drill in Italy this year, and are successful, it will take at least three years to crawl through the Government approval process to production. PVE have been frustrated by this process for some time (their latest delay was for the local fire department to complete its approval). Having been through the process maybe PVE, with its experience, could be a possible joint venture partner.

As far as Suriname is concerned that Government is in no rush to bring any discoveries into production. Their aim appears to be to prove up reserves for the future benefit of that country. Their storage capacity is already at its peak, with about two years before any more storage is constructed, and the increase in capacity of the local refinery is still about four or five years away. In the meantime Tullow will have a lot of shallow wells to drill.

It would not surprise me if KEY was invited to take perhaps a 20% stake in the Ruvuma PSA licence with Aminex and Tullow. For this they would probably need to do a share issue which is now looking more attractive, price wise, than two months ago. The drilling is onshore and is to commence within 3-6 months with oil being the main target. Being on land this would be easier to develop.

We patiently wait and see.