Ann: Farmout of Phoenix Blocks , page-11

SS,

I suggest you have not been much around the oil traps - excuse the pun - but however unreasonable the salary is quite the par for these small oiler. What I particularly dislike in this case is their is no pretense even, that are paying for superior skills - looks to me just a case of being there and hence being promoted.

As for good news wrt the cash, imho you are failing to read between the lines. The equivalent of the cash reimbursement likely to be spent in the adjacent blocks.

Then there is seismic in Thailand, a lot planned, and it doesn't come cheap in any of that terrain.

These CR often get put off hoping for a recovery in the sp, however the more obvious the imminent need the more the needed buyers stand back, leaving the company to capitulate to the market at a low point, as even with news everyone is kind of still waiting for the CR. I suspect this happened here, with management firstly having expected the Towngas deal to have helped, at least after some production recovery (which simply never happened).

I made good money from this stock on the way up, but unfortunately gave it all back buying back in on the way down. As with so many oilers the reported situation can be so deceptive, even to the management. Such is extracting the devils excrement.

EL