junior oilers 17/18 may, page-4

The five picks you nominated AYO, AWE, BPT, PSA, ARQ are all promising stocks.

I personally hold AYO bought after their 15 million scf well in european Turkey. Certainly a rocky ride since then but has cash flow and funds for an interesting drilling program.

ARQ would be in this basket of an expanding producer, cash and an interesting drilling program.

AWE is the stock that could become visable on an insto radar with a good sized project in Bass Strait.

BUY has a portfolio of prospects but the cash position could become an issue. BUY is expending about $2.6 million annually [after gas receipts] and has about $1.5 million in funds - the capital raising of this quarter. Surely one would consider funds into ARQ as a preference - excluding the punt on Leafcutter. Actually if you do not hold during drilling - why are you in BUY as this seems to be the main hope.

Your call on PSA was excellent - better than my comments. I do believe that gas prices in the US will hold up as the refill program is so far behind. However, there can be issues with small offshore gas fields a some risk must be allowed for in the stock.