apologies team, page-48

Dear All,

The main thing that concerns me about where we find ourselves is the cash position of the company. Knowing we had cash I would buy more shares as mad as that sounds. Block 120 is not the disaster that Block 105 is. Block 120 was never the panacea like Block 105 was.

One thing that always tempered me from financially blowing myself up was that ENI hardly had a single word on this Vietnam drilling. If they were confident of success I thought surely they would include it in their forward looking presentations, especially when the sums of 4-14TCF were on the table. That is moot now.

The question that remains is will the company be able to raise enough funds to go to the second round of drilling? I think that the announcements this month are vital to knowing what management think and how they think they can create maximum shareholder wealth.

Whilst I knew nothing was certain, I was bullish on Block 105. I think there is a way forward and as has been written management must now deliver in spades. I am not writing the company off yet- no way. But in order to create confidence amongst the market the company needs money and it needs a plan. That means we need to see some movements on both those news fronts.

CA can give a more solid foundation with NSA, Glau and PV development- but progress is much needed not just spoken about. The Vietnam and Indonesia zones are still in play.

Anyhow, like I wrote many times, I made my bed and I must lie in it. I can tell you it doesn't feel too comfortable. I am hopeful that if the company can organise its finances there is plenty more drilling to be done. I am thinking this is more like a boxing match where you have to keep battling away rather than an old time duel.

GLTA