ta - dingo, page-3

all quiet on the western front ... JH1 testing eta 1/20. JH2 drilling Feb..... FYI.

Just remember , whats been discovered at JH1 is huge by any standards ... 4 oil zones and 3~4 gas zones .. all in different sands and rock.

Takes time and lots of planning to get the testing strategy right and asemle frac teams etc ... if it was a simple 1 zone play then we would have had results by now.

The market hates delays , so cant see the s/p of NEO/OPL doing much for a couple of weeks but smart-money continues to build in both.

May take 5 years or more to fully develop this area with 1~200 odd wells , but what we are all waiting for .... reserve estimates should be well known within the next few months ..

The gas is obviously the first priority for the JV (sensibly) for quick c/f and funds to develop the deeper oil plays .... some of which are contained in sands that are prolific producers in the Lost Hills area to the North.

Still the best junior oiler spec for 05 imo .....but time will tell all ;)

SALTY