next week is the d-day, page-5

Hi,

The oil discovery was at much deeper depths and will be tested with jh 1-1 when they have a handle on the shallow gas!. While oil is valued more (by the stock punters), the gas is valuable as much too!.

In the area they are operating, the flow rates for gas and oil are not comparable to other areas. For gas a flow rate of 600 mcf is considered quite good while for oil a flow rate of around 250 barrels is excellent.

Gas is much cheaper to get out from shallower regions and a completed gas well only costs around us$400K while an oil well can cost around $us 1.2 to 1.5 millions. This is the reason they are concentrating on gas to build credibility and casgh flow before embarking on more expensive and more rewarding oil plays.

My view is that to get the full benefits of these companies will require time and patience (minimum 6 to 12 months if not longer) but then you are looking at 10 bagger at least.