Ann: Kangaroo-2 Appraisal Well, Santos Basin Spuds, page-46

I'm sure you must see what we are questioning Trademanic. If you say an announcement is not positive, most people will take that to mean the announcement is negative. Yet, how could Karoon say anything other than what they said? Clearly oil can not be confirmed within days of arriving on site. Announcing spud is the normal course of events leading to depth drilling and 'the result'. I'm sure you know that.

I think you are confusing the market action with relevance to the announcement. To many factors at play, not least the current sentiment towards energy and oil in particular. You are a shorter so you will know only to well that those with an interest in driving down the price will latch onto anything to increase downward pressure. This is clearly a play on nerves and while I would agree the sudden down spike coincided with the announcement it was nothing more than using the announcement to worry more into selling. You know how it goes - people will expect a rise on such an announcement so lets flood the market with sales and create a little disruption.

Serious buyers will sit tight and wait for it to play out.