phoenix well, page-6

Hi all,

Personally, I cannot understand why the market has a low opinion of the share placement.

There is a share dilution of course, BUT, you are also more financial to the tune of 6.5c x shares taken up. ie it's more shares, but you also have a bigger kitty. You cannot do business with no money, and if the well comes in??

For share holders, there is an option with every share taken up and you don't have to pay for it up front and if the well comes in? I am taking mine up. For those that are not keen on taking it up, you can always sell your shares now and take up the equivalent and then you have a free option for when the well comes in!! The only uncertain thing is how many you can get above your entitlement.

But of course there will be failures in any drilling, that's why not everyone is in the game. As to the COS, 1 in 10 yes, the normal yard stick, BUT, you also have people having 70%+ success rate overall, Tullow Oil. Their success rate in Kenya is 100% success over 5 wildcat wells last 12 months, and in Uganda, it is slightly worse, like 94 out 97 wells; but that I think that is exceptional rather than the rule.

We are NOT drilling in a completely unknown area, so the COS of success I would rate as good. Apache is a good operator!

All IJMHO

KKW