spudding next week, page-11

re: exciting times coming up for petsec Hi OMR,

I know you don't think much of the Beibu prospect so all I can say is I think you are in for a very pleasant surprise. Correct me if I am wrong but I think you thought that if Total drilled the prospect and gave away the small discoveries it made, then there was nothing much in it for the Australians.

The Aussie group has the benefit of 3 D seismic that Total didn't have and is drilling a new prospect at Wei 12-7 that Total didn't test. There is oil in the lease and in leases all around the Wei 12.

The Weizhou formation appears to be a huge oil pathway and is highly productive in regional leases. I know Brent Emmett is inclined to hyperbole ( I followed him thru Huinga 1 B!! ) but he is really excited about this lease and has a lot of his own money riding on it.

What I guess I am saying is that if Wei 12-7 is successful, PSA at $2.50 is more likely than PSA at $1.50. The good thing about it is that even if China disappoints PSA is on track to achieve a major recovery thru adding Vermilion to West Cameron reserves. So PSA along with ROC are the safest two China plays. FAR and HZN offer the high leverage.