fortune oil going troppo, page-42

NTTG,

"((MPO has some 900m shares or so. So the $1 gives a capital value of some $900-1000m. given the assumption of $2m per 1Pj of 2P certified reserves, MPO needs some 500PJ of 2P. ESG is in the same boat in that it also requires 500Pj of 2P reserves to satisfiy its MOU with Macquarie Generation. ESG will achieve this by 2008. The advantage that MPO has over ESG is that it has a number of projects china, qld, glouster and South africa which are all progressing one way or another. until it gets the 2P certification it cant do any contracts.))".

Here lays the difference of the sp between ESG and MPO. ESG is getting closer but, it also has an MOU with Macqarie Generation to supply. Hence the difference with the sp.

I have no doubt that MPO has bigger resources and bigger plans for the future with China, South Africa, QLD. and Glouster but, untill they start to get Gas out of the ground, (or at least starting to pump water out of the wells, which is a sign of gas to come), then signing MOU and possible future contracts to supply, unfortunately the sp will stay idle.

I really hope that I am wrong, for everyone's sake but, if you are a long term holder, IMHO you shouldn't have any problems.

It is my opinion therefore, that the Management should concentrate to achieve that 2P certification in Glouster and QLD, where there are proven reserves, raise funds by selling the Gas, and then, with the revenues from these contracts, concentrate Overseas without the need to do any further fund raisings, and dilution of capital.

This is what I believe AOE did, before they decided to look elsewhere.

Anyway these are my thoughts..............Buddy