I have been concerned about the lack of movement in the share...

I have been concerned about the lack of movement in the share price. It was nice to close at .6 cents for the week, but it hangs there by a very slender thread. So I was thinking maybe there is something I’m missing. I’m quite happy that Rex is a producing well. So I went on the net to check out the price oil in Alberta.

What a dog’s breakfast I discovered. Record low price last October, holdups in shipping oil etc.

So I sent an email asking the boss for the low down on our likely oil price and what our costs are likely to be.

I got a reply today which eases my concerns somewhat.

I summarise the four main points .

We are getting $35/bod net back in current test. Hey we’are selling oil

Margins will improve in lower cost production phase in long term. Selling more oil

Historically we have been getting the US WTI price minus a bit. It all changed in the second half of last year but recently has stabilised at an extra $US 10. bigger discount.

Last but not least “flow rates coming soon”.

I’m very happy with the factual answers of my questions regarding prices and pleased to have what was happening to the oil produced, answered that it is being sold.

Great times coming for holders.

Above is I think an accurate account of the email recisved.

Exactly how long “soon” is , well I don’t know. This time last year I would have said that “soon” we will have a permit to do them 3d seismic at Xanadu!!!!!

Hoping soon actually does mean soon, so I can get on with the next stage of my life and hoon around in real class.

Cheers

Saltbus