emails, page-32

Hey Oliva

Thanks heaps. 60 beats 65%. I am confident of a fair deal. As PC43 says....they have had some problems.

Expecting to output 30,00 bpd and ending up with 6,000 isn't the best....so the market devalued them as it did with a question over AED's ability to repay that 40+ million to the canadian contractor or whoever they were.

This mxied together saw AED fall to the $2...then on some bad DOW days and subprime chili peper mixed in, I think we saw a low of $1.04.

With AED rumours gathering pace about JV situations but no actual announcement, we saw a run to $2.90.

I haven't done perfect calc's on this, but rough ones for me and based on general %'s versus expected payment from "Mr Big"...I personally would be valuing AED at $3 and above.

The devil is always in the detail and after the deal is "consumated"...we will have to see what the JV partners plans are.

Timor....a solid and proven resource. Oil going through the absolute roof.

A caltex spokesperson just announced on business shows that we need to expect to pay over $3 per litre of fuel in 2 years.

Anyone harvesting oil now should be pretty well set imo and with AED even holding a 40% share in the puffin and talbot Timor basin, I dont think we will see AED under $3 or $4 for too long.

But the market decides, and they will either late today but most probably next week.

Good luck all. Keen to compare calculations when the figures and finer points of the JV deal come out.