Ann: Thailand Operations Update , page-14

Well I went back to re-read this announcement, after the share price plunge today, and liked what I read even less. I wonder how on earth they could have got to this stage in the sandstone development and still need to do this 'subsurface work' after spending the last 3 months waiting for the water injection equipment (I think that was what the previous announcement). There is no way things could have stalled like that with nothing happening and then suddenly oops we forgot... To me it sounds like they have been trying the water injection and it is not working, they are not seeing any increase over the 200 bopd current production.

Their confidence in 3000 bopd is no longer mentioned, instead they expect up to 800 bopd total from the whole sandstone block. This is a maximum increase of 600 bopd. The volcanic development that they were pushing so strongly is not even mentioned to admit it was a failure, so any new investors would not know anything about it other than rumours here. ALRO they are not even forecasting an end any more, obviously more going on, and if they ever get the production back the shut in production already released is declining so fast another 200 bopd will not help.

So that leaves us next month with a base production down to say 1300 bopd and at most 600 bopd, but most likely half that, or in total 1600 bopd out of 3000 bopd. I do not see how the future drilling campaign is going to be funded from that when the last one was not funded on significantly higher oil production. Then on top of that is the very high management and admin costs, the seismic acquisition and analysis, and the well workovers and money is going down fast. In fact they did not mention the cash balance now, so it is likely that it is not on target for $20M.

It seems to me like relations are not good with their partner Towngas, if communication is so poor with the WBEXT development, and their wording was 'agree to collaboratively...' what have they been doing so far?? In addition, this ongoing fight with ALRO does not bode well with their political relationships there, now I remember there were similar unexpected delays with acquiring their last production permits. Towngas seems to be a liability rather than an asset so far.

Even after this I still get the feeling that there is something more being concealed that that we have not considered yet. All of the above mentioned can already be inferred from what has already come to pass or searchable online. I now get the feeling there is something bigger to come, particularly given the strong drops in price today. There must be some reason for this evasiveness in reporting which still concerns me almost enough to dump my last shares as quickly as possible today given the market volume was finally sufficient. What is coming we could possibly have missed as of yet?

Well back to the internet search this weekend. I really wish I could find something positive as I would love to be able to push the share price just a bit to get in enough volume to sell out safely.