sandy, page-23

irynka, the only aspect you have missed is speculative valuations regarding Galoc will be removed shortly, and from that time on, oil analysts in the employ of broking firms will assign their own values to the company. More or less removing sentiment from that part of the loop - share price wise

Sentiment is a powerful mover on speculative plays, however when there's some money on the table the numbers tend to do the talking.

Further, the cash flow from Galoc will fund the much bigger game, That is, the quest for 11.6b barrels of oil, which of course, costs money. This cash flow means there will be no call on shareholders to fund the big play, it also means that expenditure driven in that direction comes off the bottom line, tax wise. In effect, probably ending as a revenue neutral operation, yet fully funded for potential of massive growth.

At worst, all this makes for a low tax regime for years, save for whatever royalties have to be paid into the coffers of the Philippines govt.

So what I'm saying is, pretty soon monthly cash burn will not be an issue for this company. Therefore, I would suggest you rid your thinking of historic share price movements because in my view we will soon see another floor price under the stock.

One that is higher than most punters might imagine