good news week, page-28

kajtekpis,

Not at all.

Given the good well productivity and low investment required I"d readily drill more wells. At USD125/bbl even 17.5% of say USD100/bbl (after all capex and opex charges and the WB discount), or USD17/bbl profit is fantastic. Get your capex back in a couple of months, then collect say 17/bbl NPAT - why wouldn't you drill??? even if it were 10/bbl.

But lets not get carried away into fairyland with the rampers here, and believe we make something like $100/bbl. We"ll be lucky with anything over 15/bbl on new production in NSE.

For other areas, outside the NSE permit we will start with profit near USD40/bbl on current prices.

Realism, that is all I want to get across. We have one of the best little oil businesses on the asx, but we need to remember that the govt take is MUCH MUCH higher than in Australia, and sober our expectations accordingly.

I hope Kajtee that you were sober when you sacked the Administrator (and perhaps if the management had been more sober earlier there wouldn't have been an Administrator appointed in the first place?)?

EL