cambay-75 will be plugged back, page-47

ipod,

just bought at 17.5 as well,

i also just spent the last hour on the phone talking with bruce about the current state of affairs.

I knew nothing about this stock before this.

They just emailed me the latest hartleys report, but the conversation was more revealing and down to earth.

So my basic understanding, is that they are drilling for gas in India, but took the op to test an oil indicator on their seizmic.

The previous drill contracter has been disapoointing, contracted when demand was high.

3 of 6 wells drilled, and not to target depth.

They are trying to correlate russian data, with this drills, and so they can come to a reserves.

Shallow Quality ok, but deeper target not tested by driller, and likely engineering techical solution required for extraction. Some issues there, but they may end up with something on the shallower gas, in terms of resorce, once they can correlate the russian data.

Probably another drill required to acheive this.

Other assets.

While they have 10-11 mill in the bank. they JV out some of their prospects for cash.

Two leading prospects,

first, indonesia, they are currently 67.5% but not operator?? And the current operator wants out, there is a negotiation for him to exit, and they are trying to JV with 3rd party to aquire his op, and another 33% of theirs, so that they end up with 33%, and a more experienced jv partner 66%. Could happen any time, overdue, but expect 1-2m IMO. This is very important, as they have a commercial well, and are to drill 2 more. If they end up with 33%, net to them circa 1000 BOPD, cash cow.

Second, JDPA offshore, high quality realestate, big names in trend, jvs nocking on their door.

Both these JVs will increase their cash balance, and esp the indonesian, will add cash flow, for them to contine the drills in india to get to a reserves with correlation of the russian data.

Thats my take, from the phone call.

Harlteys are bullish, 12m target 1.51

I think the reaction today with no oil, is an over reaction, when they were primarily drilling for gas.

worth the punt, historic lows.

Enough cash to alay any fears of a rasing anytime soon.

cheers