Personally, I am very impressed with the Chairman's Address for...

Personally, I am very impressed with the Chairman's Address for the AGM today.

This is a company which has followed and worked a successful plan and has a great future.

My understanding of the hedging arrangement is that it was put in place to protect a part of the income stream and guarantee payment of the bank debt. My experience with bankers is that they are a nervous lot and probably would have demanded this as a condition of the loan.

The loan was taken out so as to prevent further share issues diluting existing holders interests. All these steps show a well run business.

As the bank debt is reduced, more production may become unhedged permiting the company to benefit from increasing oil prices.

With good management and two wells being drilled this looks pretty safe to me.