Ann: Company Insight - Explains Farmout of WA Per, page-5

re: Ann: Company Insight - Explains Farmout o... Gottcha,

Well the WA permits can't underpin the whole sp, and even if a drill were successful it might not be a huge multiplier on the sp. if we got a 1 tcf discovery it might be considered a bit marginal by the market which might value our 200 bcf at a modest 50 cents/mcf, ie little more than 10 cps.

Nevertheless I like it, as one success might lead to more in such a large and under explored permit area, Apache is a very credible explorer (and developer, albeit perhaps a little rough around the edges). Seems to me we are likely to retain about 20% through a handful of free drills in the five permits.

Thailand is still a worry. Also hardly unusual for a sp to dip to the CR price now is it? Might be unusual for it not to.

Haven't been a fan of CVN for a long time, however I expect to get out at quite a bit better price than the current one, but will not be too greedy. Will need to watch for sunburn on the scalp too.

EL