OMR, I think you over-reacted with your reply.I did not say when...

OMR, I think you over-reacted with your reply.

I did not say when the buyback should happen, nor how much.

1) I recognise that all the PSA cash is spoken for at this time. But, PSA will have strong cashflow from now on, provided all wells are producing. It also has no debt, therefore has the provision to introduce cautious gearing if it wants to. Noone knows the value of the assets better than Petsec´s own management. Obviously the timing and the shareprice will have a bearing on the feasibility of any buyback.

2) Many were disappointed back in January when Petsec raised capital at 95c. I note that some people had the sentiment that they had diluted and sold out the future potential too cheaply. My tendency is definitely more towards buyback than towards raising. Yes, you could stick only to development of the fields, but why not look at the buyback as catalyst depending on what the future brings?

3) Daily trading volumes in Petsec are small. Even announcing the option to undertake a large buyback but starting it slowly could be beneficial. If share price weakness continues, they could kick it up a gear in 2005.