a comparison - weatherford 828 v gt3000, page-7

My pleasure folks.

On the subject of the CLRS, I've been extremely negative and disappointed regarding this technology in recent times. This has been largely as a response to the distinct lack of 'action' in getting it put to work.

I firmly believe that the entire sentiment of the company has changed for the better, much better, and along with it so has the potential for the CLRS and my opinion of it too.

I've done some back of the envelope calculations if you will, on the company whom was to merge with CKK during 2009 - Imdex Limited (IMD). You may recall that it was indeed Imdex whom pulled the plug on the deal.

Many, including CKK chareholders, assumed the reason Imdex did so was because of problems with the CLRS technology however this couldn't be further from the truth. Imdex's decision had absolutely NOTHING to do with the failure of the CLRS technology, it was for very different reasons that were NEVER announced to market!

Currently IMD has a market cap of $274.9M with just over 197M shares on issue. IMD had a 2010 FY annual reveue of $134M however the net profit was a mere $9.8M (7.3% of annual revenue).

In comparison CKK has a market cap of just $31M with a smidge under 148M shares on issue. Now obviously CKK are at a very different stage (transition from R&D to profitable company) than are IMD who have been in the game for many years. However based on IMD's market cap, CKK's share price would be $1.85 and I reckon that's being VERY conservative!

While I firmly beieve the medium term potential for CKK is nothing short of staggering I cannot get past the thought of the two technologies being extremely high on the shopping lists of others in the industry. I also firmly believe management see this too and there are many reasons for this in my opinion, some of which I have outlined in previous posts.

Woodside are clearly wanting to maintain the relationship with CKK. This I believe is demonstrated by the maiden trial of the CLRS on the Remy 1A well AND obviously the GT3000 contract in Karratha. CKK have undoubtedly cleared the way and now have a very sound relationship with Woodside, not something that small cap companies can easily do.

Clearly it has been Woodside who have been insistant on using the CLRS technology albeit via Halliburton, perhaps taking the first in best dressed argument? Let's face it if Woodside like the results of this trial, the CLRS may never see the light of day so to speak???

Not wishing to sound like a broken record, I simply cannot get past the opportunity of a friendly takover offer or two. I say friendly becuase it appears those close to the company (management & employees etc) have secured sufficient share positions to make a hostile bid somewhat difficult?

This is going to be one hell of an interesting ride I suspect folks.

WC8