takeover dead, page-5

Jessimore,

My turnaround on COE began with the revelation of their options and bonuses (although I should have seen it earlier), their determination not to pay a dividend or to buyback as the sp sunk lower. Their failure to deliver the Bargou farmout "mid year", plus the credibility gap as to what is going to happen next with gurame has also been festering a bit.

Excuse me for then seeing the bid as much about empire and ego building as about building shareholder value. Add also management habit that I had not previously noted of management selling off converted oppies rather than building a stake. Fault me on my research on COE, yes, but not for changing my view, inflexibility is an investment hazard.

It's also a recognition of their failure to grow through their international exploration business model, and detracts credibility from the glowing rap they do on Tunisia etc, Eg the recent report on Tunisia by RPS, which by implication is away with the fairies as an RPS report is the basis of the independent valuation in the Targets Statement.

If you want more COE, and believe the bid will succeed, why buy COE at 29 when you can get 1.9 COE plus 50 cents for 82 cents? Your action baffles me, and you've probably bought some of my COE.

EL