** org merger **, page-5

ARQ's attitude has surprised me as well, they think a shake out will happen when the oil market collapses soon because of extreme drilling costs / lack of quality acreage / falling oil prices. I don't think that will happen. Once china/India/Asia start producing more rig's/FPSO etc etc, costs should come down and I cannot see oil prices collapsing

Obviously ARQ are finding it tough to buy oil assets, like everyone else. It's holding off buying in a boom market and waiting for the slump, which is a very smart way to operate, no need to rush and make bad decisions. But other spec oilers, especially new ones, have picked up quality acreage, some producing, mostly in the US and look to start by making a good income stream.

ARQ's contacts with VOY got them some quality Yemen acreage (or was that stolen? :) but they now seem to be having trouble finding new stuff. SAE's J.Begg seems to have found some quality onshore oil acreage in the US ... Exactly what ARQ wants! ARQ prefers onshore oil close to facilites ... J.B. better wear ARQ Shark repellent if North Yowlumne comes in! I'm sure ARQ would accept a move to the US to build their company to the next stage, like PSA, if the opportunity presents itself.