True Roznov.Plus the shallow gas plays in the Po Valley are very...

True Roznov.

Plus the shallow gas plays in the Po Valley are very low risk, however the oil plays are still classed as high-risk. Although Key Petroleum's Po Valley acreage is only 8KM away from the largest oil field in the Po Valley, risk associated with oil is still classed as substantial given Villa Fortuna is only one of a few oil discoveries in the Po Valley - it is for more highly prospective for gas.

I wouldn't be surprised if KEY decided to drill two shallow gas plays and dismissed an oil play altogether in the coming program - we know they have already delineated one gas target termed 'Borsano #1,' in doing so they have declared their intention of exploring for gas (we have not been told potential reserves.)

Borsano is great given 100% interest, extremely low costs associated with production given successful exploration, and the Italian fiscal terms are excellent.

SS.