gang of 'five' oilers

Regarding our Oilers which we should now include AWE following its 'kick as#' performance in recent times and Bass Gas still to come - therefore 'Gang of Five' - HDR/PSA/AWE - all made it to $1.50+ in recent times with PSA suffering from the 'China Syndrome' for now but increased GOM production will kick in during 2004 and in todays AFR article the magic 'D' word was mentioned - DIVIDEND - by Terry Fern.

ARQ has 'languished' to some extent with the Perth Basin disappointment regarding the large Oil prospect a duster. would have really kicked on if this had come in. Still they must be making serious bottom line profit with the current Oil price. Seems undervalued at <$1.00.

This leaves the 'dreaded' AYO. Friendless and many rather less then impressed holders ATM following the failure of the 'dead cert' Whicher and endless production problems at Gocerler. HOWEVER - good times MAY be on the way over the next few months...

WR - Dare I raise the prospects of this Mega Untapped Gas Field amoungst civilized company on HC! Production from which would be greadily 'snapped up' by the energy hungry WA market including many large projects which would be transformed from 'drawing board' to 'reality'. Many 'stories' of letters of intent held before WR5 by AYO to provide huge amounts of gas to certain large Industrial users - who are either wary of the dependancy on the NWS pipeline or just want the cheaper WR gas including for expansion. Stories of the Korean JV partners (if they are still partners after this weeks JV meeting - rumours of serious cold feet there) planning export LNG facilities and power plants. Many stories and rumoues - BUT NO GAS - OR NOT ENOUGH GAS! Thats the problem. Yogi knows all about Frac's having been on the rigs. This one will be designed for the formation and state of the art as Frac's go after - BJ Services are contracted to do it -(www.bjservices.com) - one of the two big kahuna Frac'ers in a global sense and detailed formation evaluation by Geomechnics International (www.geomi.com). Equipment on site and ready to go Mid July. WR5 is cased and ready to go and IT WILL FLOW NO DOUBT ITS JUST THE MINOR DETAIL OF HOW MUCH AND FOR HOW LONG. PLEASE NO 'TECHNICAL' PROBLEMS - BUT COULD BE A BIT MUCH TO ASK.

TURKEY - The word is 30mmcfpd in July. HALLELUJAH! Its been a stressfull six months or so since the Gocerler 'downgrade' announcement which after some speculation was an 'overkill' by AYO - actually provided to be even worse then feared with daily production dropping to as low as I recall 9mmcfpd. The 30mmcfpd will be split between the 3 producing fields according to the latest investor presentation and people out West who should now. Lets see if it come to pass. If Gocerler gets back up to 20mmcfpd they should reach the long sort 35-40mmcfpd predicted many moons ago.

USA - Major drilling 'buy in' to be announced very shortly apparently. An 'onshore' PSA??. That would be nice. No platforms to build etc and those nice US gas prices.

An interesting few months coming up. HOPEFULLY A LOT BETTER THEN THE LAST 6 MONTHS!