boom or bust, page-9

From what I have been reading Mali is now too expensive for Baraka because we can not pay 1 million per month from May onwards and a decision has to be made by the end of April. I do not think that Eni or Sonatrach will help us because they get our share if we give up.

I see three possibilities, reducing to 0-10% to reduce cost, finding some third company to pay a few million for our 20%, or getting a 5% or so free carried. I think that BKP are probably planning on getting out of Mali with the possibility of generating enough cash in Columbia that they can keep their 25% in Mauritania, because the bills for Mauritania are smaller and should not affect us till the end of 2007.

I think that if they have 2000BOPD flowing in Columbia in the next 6-12 months then things could get interesting again. However, they will probably require a cap raising in the order of 5-10 million to continue drilling in Columbia.

Holding: OEL, CTO, FAR; BKP, BMN