jerk reaction, page-16

At the moment we are getting rid of the lemmings called sophisticated investors. At the same time I have sympathy for the board as I suspect they needed a guarantee of additional funds in a hurry.An issue takes up much more time and the delay might have caused problems.

1.Hilcorp could have indicated a continuation of drilling for which ADI will need 10% per hole.At the rate Hilcorp are drilling this alone might have caused early financial problems.

2.The last report made it clear (to me at least ) that the Yemen seismic is looking good and ADI might not sell. If that's the case they will need to fund their share of expenses including one hole in 4th quarter (about 8% from memory- easily checked).
The board took the only action open to them to raise funds quickly IMO.An issue takes much longer and they had to act quickly.

Rancho results could turn things around and might even be available this week.Hilcorp works fast and must be using far better methods than the last operator. Good luck to all holders .Looks like more patience is needed, but I believe ADI is an excellent buy at current prices with the possibility of some blue sky appeal in Yemen.