the 'perfect storm'?

From QPN's (and co) point of view, what is the "perfect storm"...as markets spiral out of control following on concerns of Middle East/N African uprisings, compounded by US/European debt woes, recent natural disasters, ie. devastating earthquakes and tsunamis, and now the use and safety concerns regarding nuclear energy, we really need to sit back, grab a cold beer AND ponder a little about the potential economic and financial implications!

Putting fear aside and entertaining a bit of rational thought, one might be able to envision a climate where energy prices will likely rise significantly. The uncertainly in the middle east & north Africa has placed unabated fear on oil supplies, causing oil prices to rise substantially. Of course this has been tempered somewhat, at least in the short term, as Japan's heavy reliance on oil consumption has been curtailed by the recent earthquake and Tsunami events. Nonetheless, given these natural events have also downed 11 energy-supplying nuclear reactors, its likely that their appetite for alternative fuels, such as LNG, diesel and other refined fuels, is going to increase substantially, particularly during the upcoming rebuilding process. A little closer to home, interest rates may stay on hold or drop slightly (in the near term), which might put down-ward pressure on the Aussie (vs US) dollar.

In short, sustained high oil prices + rising gas prices + lower Australian dollar EQUALS big bucks IF CAZA and the team hit economic hydrocarbons. With a reliable drilling team and detailed evidence from 3D seismic data, I would say all signs so far are pointing towards a 'perfect storm'.

Just have to have to ask yourself a simple question, do you feel lucky puck...well do ya?!

Well, I do...haha

GL all.