** org merger **, page-10

re: ** market thumbs down ** Blackgold,

You are probably right about "Arc being too focussed on the Perth basin" from the perspective of mgmt.

But we shareholders can get our diversity, and spread our risk by buying companies exploring in different basins. I'd prefer buy 6 of the best in 6 different basins, than having to choose between 6 coys, each with a bit in each basin, and none of them "basin specialists" with the rewards that can go with the specialisation.

This is why I disagree with those that say STU has been wrong to stick with the Cooper basin. STU is an animal honed in the Cooper, adapted to it, and still evolving to back the best of it.

As for NWE, agree it provides excellent exposure to TP/15 drilling. But do you really want to be lumbered with all that cash draining Nth American shale (that they appear to lack knowledge and expertise in) and globetrotting overheads? [If I want UK exporation I"ll try EXR. Indian action, McCarthy and Barnes at OEX].

With NWE, a quick in and out with fingers crossed and touching wood, maybe. I really wish ARQ would buy them, or buy them out of the basin, as the net global result would be more wealth going to shareholders, and less to directors, admin (and West Perth restuarants). A bit of consolidation can only be in shareholders interests.

Entropylord