spudding next week, page-9

re: exciting times coming up for petsec If they discover (say) 20bcf at Vermillion and the gas price stays above (say) US$4.50 for a good while, well they could improve substantially on the expected profit of A$23M this year, no sweat.

- If they got to A$30M in 2004 on 117M shares, at $1.05, PE would be 4.1
- If they got to A$35M, PE would be 3.5
- If they got to A$40M, PE would be 3.1

And they have a sackload of cash on board as well. they just raised A$12M, plus the millions coming in each qrt from gas sales. Sure, they have to spend a fair bit on drilling of Vermillion and China etc, but it all comes from current cashflow.

I think $1.50 is a fair possibility. A US cold snap and Vermillion #2 coming in would see this go close.