Tricha,Before I give advice on oil stocks, firstly I must say...

Tricha,

Before I give advice on oil stocks, firstly I must say they have proven very fickle for me since 2003. Everything that has gone sweet has gone sour, and the limited profits I have made have been through geting out in time, usually well past the optimal point. Had good rides initially on HDR, ARQ, PSA, STU, ROC, NZO etc but in the end only just got out with my shirt on HDR, PSA, STU in particular.

ARQ was a favourite in 03 through 05, reuctantly pulled out mid 06 with some profit still intact, returned late last year - to use it all up, lol. Eric generally makes great astute strategic deals, eg 03/04 onshore PB consolidation, VOY aquisition, Wandoo. However the 04/05/06 dry holes were decimating. Canning Basin. A bold, big picture strategic move with compelling logic, structured to ensure ARQ reaps the rewards of any success.

Back in because I am prepared to accept ARQ took the right approach to the Perth Basin, but simply lucked out onshore, that their perserverance will succeed. With Dunsborough looking likely for 6 mmbo net plus ARQ excluding the Canning, is looking reasonable value in my estimation.

In oilers in order of stake size I hold CVN,IPM,ARQ,SAE,COE (all credible producers) plus a couple of really small residual positions in PPP and MEO. SAE currently owes me heaps. Mostly into serious miners these days, BHP plus several Cu,Ni and csm producers.

Gold stocks not for me. They get valued on returns comparable to bullion in a safe imho, an inflation hedge at best.

EL