quarterly report, page-9

Note that it was the Tanzanian authorities that came up with the statement and not M & P themselves, that is, we still haven't got confirmation from M & P to my knowledge. On the other hand I assume it is somewhere around 5TCF because the Tanzanian authorities must have had their hands on some facts before making such a statement - I hope!

Remember that we are still in April 2008 which leaves another 8 months of the year for KEY to get the Borsano project rolling. I would be surprised if Borsano was not drilled before the end of the year.

Interesting to note they state they are waiting for the heads-up on the 'preferred' drilling location - if they get to the end of 2008 and have failed in their bid to persuade the relevant authorities of the drilling location then it seems they have a back-up location, given 'preferred' implies there exists other locations.

Interesting to note also that they are discussing with parties in Tanzania concerning potential gas sales - look for the price negotiated to surprise on the upside IMO. The shrewd business acumen that KEY management have cannot be denied - chairman and founding director Ted Ellyard made 99 million dollars profit - in a day - while he was CEO of Hardman Resources through the acquisition of Mauritanian permits from ENI and subsequent sale to British Gas after making the half a billion barrel Tiof oil discovery.

I got the impression that Lampedusa is coming along nicely, in fact to me it seems that it is about as progressed as Borsano! Cairn would make a suitable farminee given they are next door with the Louza permit.

Otherwise I also found out today that Hardman's very first drilling program offshore Mauritania comprising two wells resulted in the first, Courbine-1 being P & A'd with the second, Chinguetti-1 making the namesake discovery. Sound familiar?!

SS.