conversation with mitchel wells 9.9.2011

gk. the company's nta. has decreased 9% (excluding losses in $a exchange rate)when 1p reserves increased by 8%. how come ?

mw. "total $10m. spent on exploration with a very
low return on the exploration dollar due partly to
unsuccessfull targetting of high risk wells".

"also, in during the year exploration was cut back due to the drawn out sales offer".

"2 of the 7 new wells created in the 2011fy. were in the white eagles field which was sold. so the value of these wells is not added to the remaining assets."

"various accounting proceedures particularly with the conversion of an initially reported profit - to a $2m loss on the white eagle sale"


gk. if only 7 successfull low risk wells were acheived at a very high cost of $4.5m. on this basis will the proposed 20 new wells be viable.

mw. "planned exploration cost is $9m. targetting only low risk wells (20 wells) with a nett increase in 1p reserves of .4 mmboe forcast. an additional nta. of $20m. is forcast from this exploration". ?????

mw. "maqurie made in excess of $1m on the white eagle sale".?????????

mw. " do not intend to put the assetts up for sale again in the forseeable future".

mw." $20M. cash is held in $us ???????/

make of the above what you will but remember it is an oil man talking.

so i am not in at this point

gk.