announcement, page-9

I think you may be very close to the mark Vaga!

Kingston has gone through a few incarnations but this IMO is because the opportunities for the project change as fast as the global environment does.

Kingston was on track pre GFC to be a liquids project, then came the collapse in crude prices - no longer viable. Then fertiliser became the rage with the surge in soft commodities, now crude has rebounded......it's hard to keep up.

Each time STX have prepared their science and positioned the sales pitch the economic environment has changed radically and pulled the rug from under them!

The uncertain global environment has played havoc with this project! It's a big big spend to see anything actually come of it so who would put up bucks when the future is so uncertain - not me!

Although FuturGas has great potential, STX Mgt seem exasperated with the project and my feeling is they would let it go for the right price!

My read of Baniyas is that all the paperwork was ready for signing last year and STX proceeded in good faith believing they had an agreement with all concerned, then someone had a change of heart! The fact that they are sourcing a rig tells me they will drill Baniyas with or without ownership of the entire structure.

In the US I reckon STX are going to use their cash to buy into oil or very high condensate projects - no money in dry gas.

Cooper csg is a great concept but the coals are very deep and there has to be a question mark over whether they will ever flow csg??? UCG would work.

Why not drill conventional oil targets in the Cooper, COE & BPT do very nicely out of Cooper - the structure is well researched and thoroughly understood???

Fingers crossed for Sadie!

Cheers

HC