new base and looking forward

Hi guys,

While the last couple of weeks has seen a bit of weakness from the 8c range I reckon most medium to long termers should be pretty happy. Jpr was a pure speccy a few weeks back and now has some real potential.

One well now flowing albeit to be confirmed flow rates, however better than expected. Another well about to start drilling. I do believe the chances of success are pretty good for the second one. If so we are looking at a company changing event. If they get two up and running then we're looking good.

The weakness? Why wouldn't there be? If you had got in on the 2c, regardless of the upside, you'd be mad not to take some out. Let's remember these have been sub 4c for a long time. It seems only logical we are in a tranition period between long termers locking in and new investors getting set.

It's good to see the mid 6's holding. Very positive. Hopefully we will see some base building volumes soon. Nothing really so far. I'd say we are certainly weeding out theinvestors that have been in sub 4c.

"if" jpr gets a second strike the market will see confirmation of potential. This second one will get noticed. In my view there's not much downside from here (mid 6's). I think 12c is quite posible but any more than that is going to need some real earnings. Probably 12 months away.

Will be an interesting 6 months.

Cheers

DK