Ann: Cyrene-1 Daily Drilling Report for 24 Januar, page-22

re: Ann: Cyrene-1 Daily Drilling Report for 2... In relation to Malmoes posts when I join the dots together and with my own thinking,he definitely has broker connections,that is stated.Malmoe source is more than likely the broker to the placement of Key as it has been previously told to me that Key would have drilled the well for a lot less than the joint venture but because of Burus stipulations it needed to be done their way and that is the exact information heard through Malmoes brokers source

The broker to the placement was not disclosed and this why Malmoe cannot give his source away.The fact that the broker raised a lot of money very easily in a very difficult market leads me to believe it is a moderate to large broking house.It would be very difficult for a boutique broker to raise that amount remembering there were oversubsciptions.Also smaller brokers almost always give their name to the placement as a way of showing their success and advertising.

Why is this important?Firstly because if there is success a clientel of 500000+ to distribute to is better than 5000+ with a boutique broker and thats is why Malmoe is suggesting a potentially strong rise.Secondly larger brokers have a stronger analyst team and more than likely there has been a preanalysis of Cyrene#1 if predrill objectives are met.

Success I think now can be redefined.

Previously I thought that the Goldmyer section would not have much effect on the sp but now I think if it is in the oil window ie oil shows,oily cores it will get rerated as it will be a proof of concept confirmation.It is shallow,close to infrastructure and hence easier and less costly to develop.Just in the last week Linc energy came up through an independent assessment of having 233 billion barrels of oil in shale in Arkarinka basin and are now looking for a partner with a sum I read of $300 million.We have a partner.

The after the Goldmyer a reservoir will be tested in the Willara formation where I have been told that they feel there is an oil reservoir there but it is a question of getting it to flow,but buyers at this stage if there has been an increase in the sp would need to be careful as their could be disappointed if the flow is not there.

In concusion success leads to a spark leads to a powder keg leads to a higher sp