the market has got this one horribly wrong, page-50

I sold two thirds of my holding at open for 44 cents for the following reasons:

- I was disappointed with the 2014 timeframe for the one and only planned drill in the Moroccan assets, I also think we gave up too much of a stake for $41 million

- I would have preferred a petroleum company familiar with the geology for the Australian asset and with some real technical expertise

- I would have preferred some impressive seismic data to be released prior to farm-in deals, now I doubt it is as impressive as we had originally envisaged

The writing was on the wall in the minutes pre-open when sellers started to show their hands and build up at a rapid rate.

Like I said I still hold a third of my original holding and still and in it for the long term but I think there will be plenty of opportunities over the next 12 months to pick the stock up at these levels until a more definitive timeframe is locked in for both assets.

Short to medium term the price drivers will be some positive seismic and some broker action. Long term the months leading to spud should see good gains.

Good luck to all holders.