a couple of questions for marnice, page-11

Pongo, Since you asked nicely!

ANSWERS TO YOUR QUESTIONS

Why did the market rate Range TWICE the market cap two years ago to what it is now?

The short answer Pongo is that I really don't know as I wasn't aware of the company back then. But a few possibilities come readily to mind:

• It was a vastly different market back then with a much more accommodating view of the risks involved with Africa based exploration projects
  
• Maybe reconcialtion on the road to a Nationalisation was seen as a walk in the park
  
• Peak Oil publicity was surfacing back then. Maybe the scarcity of oil captured the imaginations of investors particularly because of Puntlands geological similarity with Yemen.
  
• After years of war, famine and tribal conflict maybe a chance to move towards economic development was seen as catalyst to achieve co-operation by all and sundry.
  
• Maybe it was ramped by skilful market technicians, and that there is a sub plot running beneath the surface with this investment
  

Why has it eroded esp in the face of supposed risk reduction?.

I am not so sure that the political risk has been removed yet. Hopefully it won't take too much longer, but certainly, drilling won't commence until the project has been politically de-risked.

How much of this upside is currently factored in to the market price?

Zilch

It seems like a done deal ........ ??

Well it does according to AOI, as they intend to commence drilling in the 1st Qtr, 2008

What price target do you have when they drill?

If they don't hit oil, say 20 cents, but then it will rebound at the commencement of the 2nd hole.
If they do find oil first up, pick a figure. I'm not greedy.

2187 suggested $60 pre-consilation = $1,200! 2187 (a respected contributor) also suggested 1.00 pre-consolidation = $20 before Xmas 2006.

I can’t speak for 2187, but I won't be complaining overly much if he happens to be right.

What are your expectations?

I expect AOI to commence drilling in the time frame they have stated.
Price wise, we then start to advance, and we leap if oil flows.

There you go Pongo, maybe you should buy some while they are still cheap.

Bloody Hell. It is 12.27 am. I'm off to bed!

Regards
Nev