otto about to produce from galoc field, page-8

I like both OEL and KAR. Both are quite different though. OEL 477 million shares @ 0.345 and KAR with 132 million shares @ 3.68

The thing I like about OEL is that almost all of it's prospects are easy drills, in a couple of weeks they will be a producer from a project that they operate (33%) in the Phillipines (Galoc). They've hit some easy targets in Turkey and have a land based field in Argentina that will be drilling late 2008/early 2009. The Argentine field has been risked at 200mmbbls recoverable from 1bbbls oil in place (Remember this is just on paper, hasn't been drilled as yet) Turkish assets should also be producing soon, so there will be cash going into the bank very soon with which to grow the business.

KAR has some huge potential, but that is the difference. I don't expect the SP to be very positive in the next couple of months. I'm looking at OEL's SP outperforming KAR significantly in the next month or two. If KAR were drilling next month I would have a different opinion. The browse prospect has great potential and I fully expect KAR's SP to ramp back up in anticipation of drilling (I think that's a given) KAR also has the Brazilian prospect, another huge potential.

I'm not looking too far ahead here, just as far as Jan/Feb 2009. Hit paydirt in browse and KAR's SP will go balistic. When 'oil/gas shows' are reported there is enough KAR hysteria present to really drive the SP. Oil shows are to be expected, so look forward to them when that happens.

In my eyes KAR's got potential to be a bigger player than OEL, but OEL is doing the smaller far less costly projects, this is what will ensure it's success although potentially not as big as KAR. KAR's success is not assured imho.

I also have a small stake in Innamincka INP which are coming online very soon as well although I got in a tad too early on that one. NXS looks good, NDO has some great assets and shares in the Galoc field with OEL (Otto) so looks similar in lost of ways to OEL. Shareholders only own 50% of NDO but looks similar value to OEL fundamentally. When production does start in Galoc it will be widely reported in petroleum market circles.