acquisitions, page-25

The point is, that we are still spending more money in buying some smaller acreages, but we aren't producing anything as yet worth talking about it. And to buy 1000 acres here or there, it isn't that much to me to make me all excited about it, especially since I live on the land and I know what spread of land it entails. And most importantly, IMHO there is not enough land there to spread the risks of getting some good result with the drilling. After all if we are to drill two wells in there at the cost of $5.5 million dollars each plus the cost of purchasing the land, and if don't find anything worth continuing with it, we could kiss all those millions of dollars goodbye. The bigger the land spread, the smaller the risks of failures.

And one more thing. 1000 acres of land is approx 400 hectares or 4 million square metres of land. Now if we are to consider that there are 1 million square metres in 1 square km, all we end up with is 4 square kms of land. Now think about if you are to drill somewhere in this land and you want to drill an horizontal well extending some 500 or 600 metres either side of the vertical, where could you end up to, and where would you end up drawing oil from, if we were to find some of it that is ???

I am not trying to put the scare in anyone's head but, to me, to buy 1000 acres of land which, at this stage is still unproven and just on the off chance that it will be worth it's investment, unless it turns out to be an excellent result, it could turn out to be a real expensive and costly exercise instead. No room for errors in there if you ask me. None at all. Just like the fall of the coin in a two up game.

I also know what you will be saying now that, need be, we will be selling the QLD assets and that we will get cash that we could spend drilling, but, if we want to see an upward movement in our sp, we have to start producing and generate some form of income first.

We have the tenements, so let's prove them first by spending the momney there, before we get into something else. For, if we don't, we will end up like the dog that is going around and marking it's territory while another dog goes behind him and remarking it all over again. In a few words like the old saying goes, going around while chasing it's tail.

All we are at this point in time, is a spec company with cash available to proceed it's operation. The smaller percentages of oil producing tenements in JV's IMO will not do much to increas our sp to a great extent, if any. It will take some good findings with 100% ownership of the tenement, to give us a good leg up.

If I have to be honest that I am getting a little disappointed with this mob. Especially since all they managed to do, is to reduce our sp by about 50% in the short time that they have been at the helm while they made sure that they received some hefty emoluments for doing it. Not much to be writing home about it, if you ask me.

I have to admit that when we threw the old board out, I was very excited about it and voted accordingly. Now I am beginning to wonder if I did the right thing, or not.!!

Cheers,
Buddy134