** will be big in 2005 **

This oiler keeps producing the goods. Still capitalised at a level which allows huge price appreciation for both profitability and exploration success.

Around the middle of last year I wanted to increase my exposure to the oil sector. I then spent many hours pouring over reports and accounts of stocks like ROC, HDR, BPT and ARQ. How thankful am I that I chose ARQ for serious investing, a stock on a very low PE with plenty of prospective exploration blue sky, in preference to HDR.

ARQ, the undervalued producer on a low PE is now in the early stages of a substantial market rerating to the point where it might well become a market and HC favourite - (time to sell?) while HDR, the market and HC favourite has since been hit very hard and lost a substantial percentage of its share price.