Ann: Farmout of Phoenix Blocks , page-8

Gottcha,

You didn't come down with the last market shower, I am sure you aren't expecting any consistency or logic to the market reaction on any particular day.

Some will have decided they'd sell on whatever the deal was, some expected too much and were disappointed, some reverted their worries to Thailand, some reacted badly that others didn't react better, and well the SPP is playing on the smaller minds, the placement on others.

However methinks the deal was OK, Apache aren't known for generosity, know the region, and know how to grow substantial operations from small beginnings. For CVN they've got 20% of company making potential fully funded/refunded.

I reckon the implication is that they have good odds of a similar deal on their remaining holdings before Phoenix is even drilled. In which case there would be some potential excitement under the sp for a couple of years.

Of course Thailand could flounder and these turn out dusters, these small oilers are all high risk.

EL