private offering of senior notes (aut), page-19

nursery

EKA has traded in the range of 8 to 10:1 for a long time so when it dipped to about 17:1 I was forced to do some swapping.

On a weighted acreage basis, using GMP Securities valuations, I calculate that a reasonable price for EKA would be about 17% of AUT ignoring the premium that AUT should have for its double listing and ASX 200 status. That is before PdA and Brioche. Fayette county seems to be sound and may take it from 17% to 25%. Brioche is a bit of an unknown.

There doesn't seem to be much comment on the MRO conference call. Safiande has posted a transcript on ADFVN (EME).

It's too long to post here but, in response to questions, the MRO COO said:

"And in the heart of the play, what we've talked about in the condensate window in our presentation is where we're -- where we expect to see this 1,500 to 1,650 boe per day IPs. In the volatile oils, you're going to see this 900 to 1,000 and in the black oil, you're going to see these numbers in the 400 range"

"we're looking forward to the 200 wells that were going to get drilled this year in terms of a proving our concept, building rate and then also answering some of the questions about downspacing on a go-forward basis"

"we've got 2 wells going down into what we call the Sugarloaf, Sugarkane area, and we expect that will prove up the concept of the much higher IP wells that some of our competitors are claiming"

"in the early part of the year 7 to 10 completions a month, and that's going to accelerate to somewhere on the order of 15 to 16 by the end of the year as we pick up additional frac crews and get our cycle times right on all the drilling rigs that we have"

"And we have added 7 wells over the last couple of weeks. And what I'll just point out because we don't have 30-day IPs on them yet, they are consistent with what we've said in our presentations in terms of black oil rates for 3 of them and volatile oil rates for 4 of them. So we expect the volatile oil wells to be in the 1,000-barrel a day equivalent IP when we get to those dates and the black oil ones to be somewhat less than that. So again, very consistent with what we predicted and we'll look forward to drilling some of the bigger wells as we move our program further south in our acreage"

These comments will have been picked up by the brokers. There were on line (known because they asked questions):

Bank of America - Merrill Lynch
Barclays Capital
Morgan Stanley
Deutsche Bank
Credit Suisse