fly....baby.....fly............, page-23

Has anyone done any numbers on the potential gas reserves versus Net Value (cents per share)? I have been trying to find gas producers with a similar number of listed shares to KEY. I appreciate that every company has different operating expenses and they sell their gas for different prices depending on the location.

There are some interesting figures on Target Energy's (TEX)recent announcements. They own between 15% and 25% of some gas and gas/oil wells in the USA. KEY has 72.9 million shares and TEX has 78.2 million shares. TEX has calculated that their 25% interest in the Garwood gas well (recoverable volume of 1.25 Bcf) is valued at 2 cents per share based on a gas price of US$6/mcf. KEY has a 20% interest in Kilwani North 1 and I don't know what the gas sells for in Tanzania.

I assume that that the Tanzanian electricity providers will not be paying as much as US$6/mcf for the locally produced gas. But on the other hand, Kilwani North 1 hopefully may be much bigger than 1.25 Bcf.

I don't hold TEX but I do hold KEY. TEX can't make any money from their gas because their basic operating expenses equal their revenue. I hold KEY for the oil (onshore) in Italy. I am not sure about KEY's recently acquired offshore interests in Namibia. Offshore means high cost and high risk. But we have to rely on the board's judgement.

I want to see a concerted effort in Italy, not Africa.