trading pattern has changed, page-5

I have this morning received some updates regarding Uganda. HDR are in fact already working on the logistics & costs of putting in a pipeline to pump oil from the discoveries. It is looking like they need around the 120 barrels recoverable as a minimum to justify a pipeline otherwise it would more than likely be a trucking operation although they are considering other alternatives as well. In house, they are very confident that they will well and truly surpass this reserve figure and still believe they will outline something in the order to 350 million recoverable in the short term with that being increased rapidly as further drilling occurs. You do the sums on this at a 50% share at current oil prices in excess of $60 a barrel pumping prime sweet crude oil. It works out to plenty or eg big share price.

Management consider that they are very vunerable to a takeover bid at the current share price as they rekon the share price has absolutely no value in it for Uganda at present or for that matter the gas & oil prospects in Mariutania that will be drilled shortly.

Tiof is definately a goer and will hear something about this soon.

I also heard that some overseas oil people who look different from Anglo Ozzies have been in for a visit. Will hear something further about this hopefully early next week.

The share price will be like a cork coming off a champane bottle. The pressure is building and it will be back up into new unchartered waters. Enjoy!