quarterly report

We have our hands on the Quarterly report.

- Kiliwani North well test is now scheduled to commence in the first half of May given delays in exporting the equipment from the Middle East.

- Cash at the end of the quarter 10.7 million

- No definitive answer concerning drilling in the Po Valley - they are negotiating with the relevant environmental authorities as to drilling location - I had a hunch this was the delay. But I understand the problem - imagine leaning out of your office window and shouting out to Mr. Ted Ellyard asking whether or not he likes his coffee with two sugars - such is the proximity of the well to the city of Milan (ok, that's exaggerating but the permit is 3km from the 'city of Milan' - however they choose to define 'city').

SS.