junior oilers 2 march, page-11

Hi B2, JCB

Was that a big step out that well? With respect to $7m in debt being a lot to carry for a small company (and I think B2 cast aspersions about this and is I take it changing her mind) these debts are no doubt secured against what the banks see as the value of their oil properties.

One could equally well argue that it is only the market that's making the company so "small" and that if the market was prepared to value the company closer to the value ascribed by the lending banks then it would not be such a "small" company.

I was once informed years ago by the departed Anthony Short that each year the company was able amortised the properties downward and that the value ascribed to the properties in the accounts did not reflect their true value.

Whether the market price will ever change to reflect this is another matter.

B2 I suppose you don't happen to know the cost of each well put down on the Red Creek property.

pj