The key to both KEY and AMX is patience IMHO. The Tanzanian...

The key to both KEY and AMX is patience IMHO. The Tanzanian blocks are very prospective - lying in a known hydrocarbon fairway.

The credit crunch has resulted in defensive tactics being employed by prudent E&Ps. This can be demonstrated by both companies, but having talked to Brian Hall at AEX I am certain that KN1 will be developed ASAP. Unfortunately there are things beyond control of AEX/KEY and the wheels of governments seem to be turning very slowly in granting the expansion of the Songas facility. This delay although frustrating is IMO working in favour of both companies. Rig rates, seismic contacts and infrastructure costs are falling due to the price of oil. A delay is conserving cash, and cash is king.

This period has been a fantastic buying opportunity and I have been quietly adding AEX at sub 6p. I am very laid back about AEX - dont know enough about KEYs italian blocks to comment on, but providing both companies can survive the next six month I think we are on a winner.