Ann: Strong Production Increase Reported Using HCD-Multiflow, page-11

I've been watching this company for months, waiting for some trials to turn to orders. Let me make it clear that I think the potential of this company is absolutely enormous.

But today's announcement highlights part of the problem I think the company is facing. The problem is the product is TOO good. After announcing today that an operator has had fantastic field success using the product, it goes on to say the operator has approached the company regarding a JV to acquire similar fields. While I think a JV with a competent operator is a great idea, especially if they can pick up a % ownership position with just the multi-flow and some application advice rather than capital. What you really want is the operator to be shouting from the rooftops how great this product is, these guys aren't going to be telling other oilers about the success they are having because they want to buy similarly affected fields.

I have thought so far the company has encountered a 'boil the ocean' problem. Multi-flow can be used down hole, in pipelines, tanks and tankers and who knows where else. Success in any ONE of those applications would be a company maker and most likely be a much easier sell.

Anyway, I think success will come. Surprised big orders haven't arrived yet. I will be buying at some stage and loading up if orders aren't reflected in the share price.

Best of luck to the company and holders.