market doesnt agree with agentm, page-24

caught up with the ADI guys yesterday.

i think the confidence on the find is obvious, in the language they use, but caution is needed as they are talking about a very recent discovery.

in no way can you say the area is patchy, i cant agree with that. i think the area is productive, and some wells may be better than others, currently the wells are all different sizes, they are obvoiusly looking at optimum well size ratios. ours didnt make the 5000 feet. but the outcomes of these wells will be fairly uniform imho, i wouldnt be discounting this play just yet, i know with the frustration of delays you can be critical, but if they didnt delay you wouldnt have 20,000 acres of chalks either!!


kennedy obviously hit a fracture and is charged up, there is no doubt they had blowouts all along, many rig operators wouldnt drill that way, i wouldnt be within a mile of a rig operating that way myself.. but they did finish it off. kennedy was drilled overbalanced, so no blowouts. imho its not logical to think that the fracuring in our kennedy is not potentially as productive as it is at the kunde wells, i have heard form many sources now the chalks were never the target originally. and i totally believe that, once the play became evident we saw TCEI getting 20,000 acres of it for ADI..

i would like to see flowfrom these wells just as anyone else would, all i hear is that kunde wells go first and we go after that, so i cant see it happening next week for kennedy, i think early 2008 in january is more than likely. many things can be learned from kunde, so why rush it now when the data there can deliver perhaps a better result?

i am not concerned with adi, i see yemen and the timor sea as good prospects, some of the jvp partners have no further projects on hand, i m happy to be on this one as i like to have a little bit of a safety net just in case. i dont expect its needed though, as despite the massive criticism of me liking what i see with conocophillips, i none the less dont agree with the commentary about that, i think conoco and TCEI will continue to develop the play and i dont agree they can afford to spend this sort of cash on a guess, i think TCEI is not as cased up as you may think and would be taking this very seriously themselves.. thats my view and i know its not widely accepted out there, but i think its valid to think the sugarkane is looking very prospective. i am glad to be in early, and look forward to any sp momentum as the results from neighbouring wells, then our well comes through..