Banter and General Comments .. BRK, page-10615

My outtakewas basically its 4-6 weeks and only then will we know what we want to do …theres no guarantee that this is having a JV Partner or a sale, more we willknow the the preferred avenue for monetisation.

Having anew CFO has probably delayed things (in a good way), with any CFO wanting to reassesseach option at at what cost.

Had a bitmore of a thought on valuation. My current view is around valuation is around2c per share

Im uppingmy NPV discount rate to 20% and then risking it by 20%.

Based on$265m less NPV rate (10x 14) = c$125m * 0.8 = $100m, so just over 2c per share

Why 20%,IRR I think from Devon (or someother one) was around that, so only fair to saythey would want something around that hurdle rate. I will retain my assumptionthe Bruins increase offsets any changes to commodity prices.

I wouldstill like to see Norman being committed to drilling and started quickly. Its lowcost so drill it and get some more production online.

However mydevelopment preference, is to commit to driling ourselves (and probably in thisorder)

1) Jewell 2 sycamore wells (on thebasis 2 we can fit 2 more, and we have the cash)

2) Flames 2 – 3 sycamore wells (on thebasis we can fit 3 more) – doing 3 would be dependant on the cash availability

3) Rangers 1 Sycamore if we can fit onemore

Once 1 or 2has been actioned then further planning can occur for the next step and withthe cash being generated from the new wells.

@@danpech remind me, how do WI costs work for drilling. Do we need to pay for all costs and then get reimbursed in cash, or do we deduct from future WI distributions (i.e. do we need to front with all drilling and completion costs ourselves)