more gas, page-3

Pedro,

I'd read a more positive spin on it.

1) I'd expect 3 bcf, as 2 to 3 wells targetting 6 to 10 bcf, implies 6 for 2 wells, 10 if 3 wells.

2)Given a 50% stake, a 6 bcf find is implied, which is typical PSA per well result, so economics may be typical.

3) I assume PSA would only drill if the economics of success compared well with other investment options. Development of these small finds generally depends on a cluster, nothing different here.

I therefore read the announcement, as further evidence of the outstanding success of PSA mostly via boring, high POS increments. Adds 5% to drilled gas reserves and the market clobbers it?

My concern is how the market will read the Q prdn.

EL