I tried to conrtact Eric today but he was away in Melbourne at a...

I tried to conrtact Eric today but he was away in Melbourne at a conference? Basically I was after his views of needing more capital v's debt funding? It seems that getting Hovea upto 5000 + BOE per day is harder than it first seemed( everything always is although they have done a damn good job uptil now). If I recall they have convertible note for 2Million due at end June which converts at 60 cents per share if not repaid. If they were going to do an issue maybe it might be linked to the conversion rate of this note. Oil price has decreased significantly I'm sure that will have an impact on their cashflow( unless they took out some hedges). Anyway Arc is now my largest oiler and it has helped keep my portfolio in the black all 2002. I sold 2/3 my holding at 0.68 and bought back in between 0.56 to 0.59 on a fundermental basis I believe that the stock is now undervauled if you assume Eremia = another Hovea.

Hence I assumed that with oil at 27 USD BOE, exchange at 0.61 you get value between 0.5 and 1 dollar/ share assuming cost oil prod. 18 USD & recov. oil of beteen 10 to 20 Million BOE.This is just Hovea and Eremia. I guess we still need further drilling to confirm Eremia but it looks good on initial info.