what now - the squids thoughts

Message from the Squid

Todays standing down of Jayme poses lots of questions and many would ask what the real reasoning is and whether it will have a positive impact or not.
After speaking to, listening and reading some commentary aftermarket I have this to add to my brief comments previously. Its a bit long winded.

The company is OKAY. The big burning question is whether there was a problem with the company . That has now been addressed today in this letter. Any doubts that I may have had are now gone.

SEA IMO has never been in better shape with the only negative being the whether impacts.
This will delay all our wishes and that is to see if the Niobrara will be the next company maker for us.
I suppose the negative markets are also not helping with many of our fellow shalers struggling in the sp stakes as well.

I have no doubt the handling of the share sell down had alot to do with the continued pressure on the
sp and that there may have been plenty of pressure on Jayme as a result. I get the impression the top end of town will be happy with the result of these changes. Hence their market comment on that subject in the letter. Jayme has paid the price it seems for some poor decisions that has effected the wealth of many holders.

The board now is totally independent with 2 US execs and 3 Aussie non exec directors. This will give
greater integrity to the decision process and give more power to the people so to speak which can
help bring about change more quickly than SEA have done in the past. The monopoly that existed is now gone with the execs totally answerable to the board. This is very important.

From an operational point of view things will now ramp up aggressively as the weather clears and should see the push towards our 2000 bopd. The oil price even with the aussie dollar is still providing us with great cash flow. The Niobrara will be key as well as the 3p number in September which I believe could be over 30 mbo.

I believe there will be alot of roadshowing in the next few weeks culminating in Eric presenting at a conference in New York in early June. This is probably to help with their dual listing coming up.

I think and believe we will see many changes as a result of todays shuffle and that will become clear in time.

All in all it has been frustrating for myself as a long long term holder but have held through with
only the smallest reduction in my position and will continue to hold for the longer term which I believe
will be very fruitful for all. Now everything is on the table hopefully the markets will treat us kindly
in the near term.