** 100% price increase **

Is ARQ hitting around $4.00 by the end of August unreasonable?

Consider these reasons:

1. More oil drilling success in their back to back oil drilling programme starting next month. They have had an outstanding success rate. There is no reason to believe this will not continue.

2. A continuing "high" oil price.

3. Projected 40%+ increase in overall production for 2005-2006.

4. Brokers reratings based on
a) Using higher oil price in the current year
b) Significantly higher oil prices for future years than are currently being used. Imagine if some actually started projecting future profits based on oil prices higher than the current price? That's what a bull market in a commodity tends to do.

5. Our energy index, while it has increased nicely, is hardly in boom mode. In the late 1970s our Oil and Gas Index went up around 1400% in a few years. We are having the biggest "shock" in energy prices since then. History tends to repeat.