qtr ann oyt, page-30

Hi folks

Yes production was certainly down but that was expected by most. Its a bad sign that so many of the wells were shut in, but on the other hand its aa good sign the production is from only 30-50% of the wells, which means the rate per well is OK.

I would be interested to see what their rig utilisation rates were but unfortunately thats not the kind of data they are likely to publish. It certainly seems like management are not concerned with production as much as the exploratory drilling of the high impact targets. They must be comfortable that production can be increased as soon as they turn their attention to well workovers and therefore would prefer to focus on what adds value for the future - the high impact wells.

Technically the last two days show a high volume test of the $1.00 level and low volume test of supply yesterday - on a technical basis thats a positive that $1.00 will hold imo so a good low risk entry point here (for me to jump back in...)

Cheers, Sharks.