Ann: Quarterly Cash Flow to 30 June 2011 , page-6

jbmurc,

agreed: you didn't say that STX administrative costs were all wages. You said:

"Looks like STX mgmt certainly know how too look after themselves showing just shy of 1mill spent on admin for the Qtr..."

What implication would you like us to glean from that comment?

Thank you for copying and pasting a definition of 'Administrative costs'.

It would be imprudent to capitalise the costs incurred in relation to the setting up of a JV so the debit will probably come to rest in admin expenses. It would not sit happily under the BS heading 'Exploration and Evaluation Expenditure', in my view.

I've never appraised an investment on the basis of mkt cap vs admin costs but each to his own preferred criterion. When investing in some form of collective investment vehicle, I would certainly view management charges in relation to income. But for this company, I'm more interested in drilling costs, production rates, condensate/oil ratios and declines. These all have an implication for the capital required to drill to hold leases and then for full field development. For the new venture, we await information, so we can only discuss what the neighbours are doing (which was quite exciting) and its other operations.