catalysts & the road ahead, page-4

Wise_One, I'd add to your list the possibility PC raised yesterday of a truly indepependent assessment of reserves. I hope it comes to pass that the comment the broker made alluding to NSAI being contracted to make the assessment.

If an organisation as professional as NSAI were to confirm the 192MB then I think we would see an sp more inline with what those reserves are worth.

Brokers use a pretty generic $5 a barrel for discovered undeveloped reserves which would be $960M. Even if the current reserves figure is halved the sp would still need to move north so theres quite a bit of fat in the 192MB to cover a substantive reduction. Bear in mind I am not saying there will be a reduction, on information I have seen there is nothing substantive to say the reserves are currently over or under stated. My only concern is that sp is a long way from confirming value at the level of 192MB which suggests to me some disbelief by the market of the current figures.

It will be good to see this issue resolved.