bp a player, page-20

mir

#1 read the last AZZ investor presentation and the patersons note.

#2 - read ASX annoucement, they roll in late 2012, 10% interest paid quarterly, around 8M on issue, convertible to shares at $2. Insignificant.

#3 - decline rates, your guess is as good as mine, for AUT, do you know? That pretty much goes for the whole of the Eagleford at the moment - nobody can claim to know declines accurately for some time - they are still improving with the new frac techniques being used. The estimates in broker notes all look the same to me.

Until the IP and declines are roughly determined (Q3 perhaps) what we do know is AZZ has roughly 3x more net acreage and 3x more Working Interest, and has a valuation at roughly only double that of AUT.

So once cash flow kicks into AZZ from the first 10 wells, because of the high WI, AZZ will be steaming along at a much faster rate of knots while AUT will being going for cap raising mid 2011, because they were starved of cash in 2010 through the Hilcorp clawback.

What you have mentioned are at this time unknowns that apply to all companies in the Eagleford or simply insigificant items like a 2-3% of issued capital being converable notes.

I have nothing against AUT they will do great. If you are a trader there are times when the valuations will get out of kilter and you can profit by shifting around the players. I do this when I have time.

When I don't have the time to trade, based on the information we have today being ~300% greater cashflow in future and net resource, yes it is a no brainer for me. Allow a massive 50% margin for error and I see I am still way ahead.

Good luck to all invested in the Eagleford.