doing all the right things, page-19

I have to agree with Cara that there is plenty of spec value in OEL but then again NDO will probably spec appreciate on its portfolio for the reasons others have pointed out. So we are really asking ourselves which company will outperform the other over 12 months? Please pass the crystal ball!

The market for oil is the key for the next 12 months for both companies imo. They are looking at the flush production period for GII. At $100/bbl OEL & NDO will be safe but at $50/bbl not so. Pricing is in the lap of the gods unless they hedge which I think is a good idea.

I like the long term approach OEL has taken in Tanzania - a low cost entry to a greenfield area. Very low GCOS but must start somewhere. More should be done by OEL in Tanzania onshore to increase participation along the rift margin and spread of risk.

The big spike in OEL will depend on how BHPP goes with its negotiations on SC55. The way BHPP play things the announcement and following OEL price breakthrough will come from nowhere so trading in/out is a risk I am not willing to take.