Snake100,Not sure why management would even want to buy some...

Snake100,

Not sure why management would even want to buy some producing fields in other countries. They are now producing and getting revenue of AU$400k/day. Sure there are taxes etc. but that is alot of money in anoyones book.

Their strategy of drilling the shallow water wells is actually a great move and in this market has proved to be an god send. 2 from 2 success rate from wells that are cheap to drill. The deep water wells cost is much greater than that of 2 shallow water wells and leaves greater potential for issues to arise along the way. The purpose of drilling these shallow water wells was good move since there were delays with Galoc (that were beyond their control) so they didnt want to commit to large cash projects until they knew they had a steady cash inflow.

Now the cash is in they can book a rig for the deeper water elephants, with or without a JV partner. The move of acquiring a strategic partner helps in a number of ways which Im sure you can figure out, i.e. drilling costs, risk, and if its a major that comes on board there is greater pull in getting rigs on location without the lag times, hence we can hit the elephants quicker. 2009 and beyond is the year of the elephants.

Nobody is happy with the share price at these levels, unless you have cash to accumulate, but show me a company that hasnt dropped in these times!

If you are looking for a quick win, well unfortunately you can blame our American friends who has stuffed any of those plans up, but for the longer term (2-5yrs) holders this is one of the cash cows of the moment, imo.

Remember, if you are not happy sell, Im happy to take your shares at these levels. DYOR