oil prices to fall, page-20

re: junior oilers mr whitchurch 1boy,

PNG is in PNG, and reliant on the pipeline.

The Eromanga I just dont like.

The geochem results in NZ are interesting. The depths are more than possible (most of the sub-500m oil and gas got drilled in the early 20th C ... but not all of it), BUT I dont know onshore New Zealand that well. The carry in the first 2 years isnt that valueable, as the well's in year three - but it should be a cheap drill.

$15m doesnt seem to be a completely unreasonable valuation for the oil and gas assets. If the gold's worth anything (and I'm not a hard rock guy), then this looks like decent buying.

$1m cash is the only downside, but they'll get the NZ shallow gas prospect drilled for that.

Ian Whitchurch