2011 may be a gusher in south texas, page-38

Spot on ASX. We are at a totally different place from even 12 months ago. The farm in/acquisition activity and new people on board in December makes it even better IMO.

Need to keep in mind that there is potential this year for plenty of activity. Ongoing production and fraccing of two wells in the south texas target.

Then one little thing that may surprise is the sale of the Magnum Hunter share of the East Chalkley field. While we were disappointed not to see the drilling go ahead on pine pasture 3 late last year, it may be a blessing in disguise that Magnum are selling. Keep in mind that Magnum increased their holding in East Chalkley by 37.5% for 1.7 million back in 2009.

That was when the GFC was very much biting and oil prices were much lower than now. Add that to the increased interest by China and others who are now actively taking stakes in producing fields. A good sale price by Magnum higher than their purchase price will have very positive effect on the TEX holding. Remember East Chalkley has potential of more than 2 million barrels of oil.

So Lots of potential here IMO, and maybe a surprise or two.