Well said BH!The thing to keep in mind when KEY farmed in to the...

Well said BH!

The thing to keep in mind when KEY farmed in to the Nyuni block was that they expected any discovery to be relatively quickly brought to market via the right of access to the pipeline from the Songas processing plant. I reckon that they also expected the share price to be much higher than where it is now, thus giving them additional funds via exercised options.

Unfortunately the wheels of government have turned slowly, not just in Italy but in Tanzania as well. Add to that the global financial crisis has made the various parties re-evaluate their priorities, such as further appraisal drilling of the KN#1 discovery being pushed back to 2010.

Some time slippage is to be expected in anything of this nature, it is just how it is. However I strongly doubt that the amount of time slippage that has occurred was antipated. If you look back to the prospectus K#1 and KN#1 were expected to be drilled in 2007. They were expecting to have spent over $4m on exploration of offshore Italy within the two years ending this April, so far they have only just recently received advice that one of their offshore applications will be converted to an exploration licence. The Borsano block should have been drilled 1st quarter of 2008, they are still awaiting final approval so that they can start drilling.