doc,I reckon there are a couple of factors at play here.The...

doc,

I reckon there are a couple of factors at play here.

The first is the general sell down of resources (due to recent weakness in metal prices). This of course fails to recognise the current highs in oil price but who ever said that the market is completely rational? I think that there will be a strong positive correction in energy shares generally once people realise that these oil prices are likely to be with us for some time yet.

The second issue is the recent run of failures in the Cooper basin. This area has had a phenomonally high success rate (approaching 50% for some companies) but the last few have been dusters. That is compounded by the fact that (if memory serves me) the last success was late last year so effectively there hasn't been a successful drill in the Cooper so far this year?

So, if you believe that a change of sentiment on oilers is due and a success in the Cooper is also due, then this is a good time to be buying low risk, high leverage junior oilers operating in this area.

Cheers

Badfish