spp - who is participating?, page-34

"I note that the sp has closed below $5.30."

The market seems to be factoring in broker consensus estimates (the very low end) of the value of Browse and Brazil and discounting that a little for taking on the risks.

Attaching zero value to Peru atm, and perhaps jittery given recent price negotiations with JPN for our LNG and their comments re American shale.

For mine the market is pricing KAR cautiously because the enviroment atm is very very conservative, so it's not unexpected given the downside risks that exist for KAR. Ie. financing for projects, lower than expected recoverable reserves, no cashflows yet, uncertainty of farm in deals etc.

The reason i own this stock is because there isn't another junior or mid size O&G that offers the exploration upside and potential of existing assets that this one does. I bought it on that basis. It already found Browse and was commencing a drilling op in a region with a virtual 55% hit rate on wells since 2008. We hit 2 of 3. Throw in some more virgin type territory on the other coastline in SA, and it's worth the risks.