brazilian farm out, page-4

eugeneb1...

cough cough {marwoode clears his throat and clambers onto his trusty old soapbox}

although I understand your frustration, I recall a few years ago that there were plenty of naysayers (some of which were well respected O&G analysts) who said KAR mgmt would not be able to attract a decent partner or get a decent deal for KAR shareholders on their first Browse Basin farm-in...

lo & behold, some time later Messrs Smith & Hosking delivered BG (one of the real big boys in the global O&G space) on quite reasonable terms given KAR had not done a huge amount of technical work (seismic etc) on the leases...

naturally when BG pulled out (for reasons unknown) the naysayers were back in force saying the Browse was a dud, and BG pulled out because they didn't like what they saw, and KAR were doomed etc etc...

lo & behold, some time later Messrs Hosking & Smith then delivered Conoco (a bigger boy in the global O&G space) on terms that were BETTER for KAR shareholders than the original BG deal!

now in the midst of a truly unprecedented global economic crisis, KAR mgmt is attempting to pull another rabbit out of their hat with regard to their Santos Basin leases... and again the naysayers are, with increasing volume as time drags on, casting doubt etc etc...

obviously the timeline may have dragged a bit longer than KAR mgmt and KAR shareholders (me included) wanted, but the reality is the timeline will be mainly controlled by the farm-in-ees - i.e. can anyone seriously suggest that KAR mgmt would throw any decent global O&G company out the door because they weren't conforming to a predetermined timeline?

low and be-hold (the price is low, and I still be-holding) now we have to man-up, show some fortitude and place our faith in Messrs Hosking, Smith et al, to deliver yet again for the betterment of KAR shareholders...

I for one still have faith, but perhaps that is because I learnt years ago that KAR mgmt is way ahead of the average Johnnie-come-lately investor, and they have done, and continue to do, an incredible job for KAR investors!!!

In closing, I would like to say that KAR mgmt can hardly be blamed for the vagaries of the market caused by the diabolical situation that politicians the world over have placed us all in with their lack of economic common sense, fiscal discipline and backbone!!!

cheers... marwoode {falls off soapbox into another case of Gin}