Louise well report, page-11

R15 and all, Not the great outcome we wanted but a good outcome. A SWD well will be very handy for Desiree and was also very clearly flagged in recent ann's for D&L3 for cost reduction. Profit is not just made from income but also reduced costs and as the wells mature costs rise so this ensures higher commercial oil on Desiree for longer which supports the long term objective in developing the field. Communication has been very good on this well as with the Investor Presentation , quarterly and market updates. The annual accounts will reinforce the strong position we are in.

For me no drama, we are on solid ground. Louise was never a show stopper, the other ones planned will provide more insight in time. Our numbers are great and we now have four producing wells, high margin, low costs in some very good areas. Personally I would wait to drill again and bank the cash, Cash is worth more than oil today as seen by companies needing to raise in current market. In these times the good story here is wasted on this market so why take the risk and waste effort and money drilling? better to build cash and look for cheap acquisitions where others have invested the upfront costs but run out of money.

Our mgt are way ahead of the pack with plenty of options imo. Looking at our numbers and our margin's I think even at US$70/bbl oil price we would still be making money of around $25/bbl after production and admin costs which is more than some are making at $100 today.

Imo market likes drilling and thinks that is the goal but the goal is to make money, how many peers are making a profit? Great to be drilling - just look at some of the recent mkt failures, there will probably be a few more. The smart coy's have slowed down to protect their assets for the future, short term shareholders don't like it but the LT's can see why risk management is the key at the moment ie. wait until the market picks up then drill and ride the tide to true value,
Just a thought!
Cheers