takeover question, page-7

EL

I agree the Tunisian exploration should be reviewed, the question is not if its marginal or not, (unless you think oil is going to $20 when it was last shut down) When COE farmed in to Hammamet oil was at about the same price and less in Aussie dollar terms. However I do agree the speed of exploration/spend should be reduced and they should farm down even the onshore target, as they are better off buying discovered barrels and or appraisal assets.

With IPM earnings per share of 16, assuming dividend policy is maintained doesn't leave much if you consider expenses. What is the margin IPM make on each barrel of oil after royalties?

My view is IPM will need to raise capital next year to fund its exploration program unless ofcourse they decide to slow it down.