MMMJIt's a difficult call.A PI would invest in a clutch of...

MMMJ

It's a difficult call.

A PI would invest in a clutch of speculative companies in the hope that the gain on one will more than wipe out the inevitable losses on the others and will also make the exercise worthwhile, particularly having regard for the risk (and the pain).

I don't suppose that the ADI board would have invested in the disparate assets unless they thought that each had the potential to do such, knowing that the others might be expensive. It is getting out of Yemen with cash (don't know whether, in the final analysis, there will be profit or loss).

What hindsight tells us is the ADI would need to spend about USD7m just to buy an interest (10%) in the land now. It will also have to spend quite a bit to end up, some time in 2010, with 10% of 6 wells. Further, the TD of the new laterals in the ADI presentation are 2x the length proposed originally for Kowalik. So, in AUD, what might all that be worth? AUD14m?

It's all still very speculative. They have had a chance to see a lot of data and, if they are right sticking with it, it could be a re-birth of the company. Within 6 months we should see what they can do with a new design (I hope). It's grit-your-teeth time.

Incidentally, do you guys want some rain? We can sell it by the inch or, at this rate, by the foot.