Cheapstake,BUY have 6% free carried interest in the first well...

Cheapstake,

BUY have 6% free carried interest in the first well in the two-well drilling program. However BUY must contribute financially to the second well - Kiliwani North 1. KEY are coughing up 30% of the cost of the two-well drilling program and in turn earn a 20% interest in the project.

KEY are following up the current program with a drilling program in the Po Valley scheduled to commence in Q2. They have already identified one gas target, termed 'Borsano #1'. The permit - 'Borsano'- lies 8km from the VillaFortuna oilfield which contains 250 million barrels oil (as much as the whole entire 2P reserves of the Cooper Basin in Australia) and it is also host to 175 BCF gas.

A good company to compare KEY with is Po Valley Energy. They have established reserves of 60 BCF in the Po Valley and are targeting 200 million barrels plus oil 'planned for 2008.' They have a market cap well in excess of AUD$100 million, and they boast of being '50km from VillaFortuna.'

I agree with the contention of Chairman of the Board of Directors Mr. Ted Ellyard that '[the current SP] may not represent the potential for significant upside in the Company's projects.' (Chairman's Statement, Annual Report 2007).

Cheapstake, I hope I have helped you in your quest to found sound exposure to the Songo-Songo JV in the near-term.
And good luck!

SS.