califonia rig secured, page-6

EL, I agree that they seem to have really had a rethink on how much effort to invest in Selmo after the latest USR wells. I would like to see how the USR wells perform over time and if they water out very quickly, but I thought the results were fairly solid from the recent wells.

I suspect a lot of enthusiasm has shifted to the new California projects and they will be happy with a gradual decline at Selmo to keep generating a solid cash flow base to support the other projects.
I am happy with that strategy too as we now have some "blue sky" potential without the need for dilution. I see Edirne as being able to keep generating enough cash for the dividends for the next few years with the cashflow from Selmo being able to be invested into California. I thought at one stage they might shift their rig to California. Would that be feasible?

I'm looking forward to the Qtrly which I hape will have some more info on California.

stezz