sxy buy recomm in shs, page-22

Hi all.

I follow all the Cooper Basin stocks and after a conversation on the SXY threads, I thought I would share my guess in regards to who might be trying to do a J/V with AQO (Of course, I also think that other Cooper Basin companies, in particular, Beach may also be sniffing around).

Recently, SXY drilled a well at its Worrior field with COE as its partner. SXY is then drilling another well in the same tenement, which, a fellow poster advised that he had spoken to SXY management, and they mentioned that COE was not going to partake in the second well, because it wants to conserve cash....

I find COE saying that they are trying to conserve cash a very strange statement, as they have $70 million in cash, as well as recently organising a $40 million debt facility for 'general corporate purposes.

I am postulating that COE is indeed in the running for a J/V with AQO. As from the maps, it would seem that COE/AQO have fairly similar acreage.

All just my speculation, but I have been unable to find any other reason for COE being thrifty. COE is even hoping to reduce its overseas exposure to focus on more local projects.

Good luck to all holders.