Ann: Production Update , page-20

Robertb1010

McCoy and Franks are not selling to my knowledge. 1 big seller today 700k at 61c. We mat find out who that is. I havent studied the Top 20 for a while but I am sure there must be some changes there.

In terms of the McCrady move I decline to comment other than I feel it will be positive for the company. Eric is highly rated amongst his peers and will be a better front man than Jayme. Jayme's skills were always finding new projects at ground level but wasn;t the proactive upfront man that we need where Eric will be. Eric is the man who will be doing the NYSE stuff -thats his background and be the fromt man at conferences. This was not Jyames forte and if you have ever heard him speak you will understand why. He couldn;t sell a pice of cheese to a mouse verbally. There are probably other factors which I won't speculate on.

The intial backlash was large from shareholders - that I know and that certainly had a detrimental effect on the sp. The company is very aware that thw whole thing was dealt with poorly. But its too late for that now. Now the stock is downtrend and the ASX had been bloody horrible for weeks due to the high dollar etc had added to the downward momentum. The lack of buying has been just as much a problem rather than the selling if that makes sense.

I am reassured that the company is going great guns operationally other than the delays that all North Dakota projects have had due to weather.

It certainly doesn;t explain a nearly 50% drop in sp. Most other shale oilers on the ASX eg AUT, SSN are doing it hard at present and well off highs despite the oil price..

For mind its a great oppurtunity for a medium term holder. Trading at present has been difficult - I have been burnt twice in the past fortnight. I suppose some now are getting nervous due to the fall and sell and then the tax loss selling so any number of factors are at play.

Hope this helps. I still hold 85% of my original amount.