spudding next week, page-19

china Thanks for that mn, few percentage points out here and there!. China is less important for ROC and PSA than it is for HZN and FAR given the other interests of the former. ROC and PSA will still obviously benefit hugely with some drilling success but its the tiddlers that could be several baggers.

For Horizon and FAR, China has the potential to be company makers and despite the large number of shares on issue HZN is proabaly the one that will run the furthest because it is a bit better known than FAR and has the larger percentage interest.

I should really buy some HZN but I would have to sell some PSA to do it and now that Vermilion is proved upI am reluctant to do so.

I try to make it a rule not to hold through the drilling of a well but Wei 12-7 and the rest of the program looks so good and PSA has Vermilion, West Cameron and Ship Shoal to keep the cash rolling in that I am going to see this one through. I also hold FAR for the real speccie interest.

I don't think people yet appreciate the extent to which the JV partners could rock and roll if the first well comes in.

The size of the target is considerable, we are offshore China, the economic powerhouse of the day, the media will finally discover the story, people on holidays will rush to get in lest they miss the boat. It has all the ingredients of some terrific trading spikes for FAR and HZN and major revaluations for PSA and ROC.

BUT the key to it all is the success of the first well!!!!!!!