spp underwriting, page-4

Confirmation from company re flooding. That will I suppose delay the start up of the drilling as well.

Ronsteib

That is alot of ground to cover but they haven;t drilled too many dry holes. The development at Mirage didn;t work out which is several years ago. Since then from memory I can recall at least 2 dry holes and the rest have been winners.

Re the raising. Look no one likes it but when you are a junior you need capital and thats the way it is. Spoke to eddie last year about capital management and he was not fussed at all about the amount of shares on issue and said that he did not favour reconstructions etc. The only reason we are seeing a raising so quickly from last year is the size of the program which has doubled. The big thing I suppose is that as long as it equates to reserves which everybody seems to want and increased production then it won;t matter.

The 3d appears to have been very successful and that the fairway play is only just starting.