Ann: Production Update , page-11

Thanks for the spreadsheet WhyNot, very helpful and informative.

A chart of production levels over time would be good, which I might create if I get some time.

At the moment it seems that production is going up, the oil price is gone up, and SEA's share price is sinking faster than the Titanic.

This does not seem to make a lot of sense, and certainly, new investors looking at this will be very wary, and I am sure will be looking for answers before investing.

If someone had come onto this forum in March and said the price would plummet from $1.10 to 65c in a month or so (while production goes up and the oil price goes up), they would have been seriously abused, wrapped in a strait jacket and sent off to the nearest funny-farm, because to most of us it was unthinkable. So what if next month it is at 45c? Is that also ludicrous?

SEA needs to update it's web site regularly, it is old and tired and parts of it are out of date.

I have emailed the company with the occasional enquiry over the past month and nothing has been returned. Is everyone on holiday? Does anybody work in the office? I also phoned and no-one answered.

Looks like the directors have taken their millions and done a runner. Perhaps this is now one of those algorithmic companies entirely run by computers. Just joking of course.

I do get the impression though that perhaps the board and management is getting old and tired, or perhaps they are just resting after a very successful 2010.

Maybe the injection of some younger, more energetic, aggressive, hungry-for-success, dynamic directors with fresh ideas would not do SEA any harm. Is there anyone putting their hand up for election?

Will the JV with Halliburton on the Niobrara bring SEA back to life?

SEA raised $21 million in November to accelerate the Bakken developoment program, as well as the development of Niobrara, Ariba, Wattenberg and Pawnee, plus acquisitions. So the 40% decline in share price recently sure makes it look like the market thinks this has all gone pretty well.

And as of today there was still 3 times as many sellers as buyers (at least on the commsec screens), so the selling is obviously going to continue, I think probably back to near the 51 cent capital raising price from November.

If I did not know better I would say that the whole period from November 2010 to now (from 51c to $1.10 and down to 65c and heading back to 51c) was an elaborate and premeditated 6 month price manipulation by brokers and others. Inflate the price, get the punters in, take the money, return to the starting point. Beautiful. What a conspiracy theory eh. But we all know that things like that do not happen on the ASX.

Anyway, all that aside, I am here through to the end of 2011, and to see what happens with Halliburton and the Niobrara. Watch us bounce off 51c and then head back up.
Gw