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Recoop

I did vote re rem report - i just hope it gets there in time

I think the exit of Seruway and the choice of the cheaper Furschia over Tazerka will do a lot to reduce exploration spend.

my estimates is Furschia if done via a jack up rig should be 12-15 million, cooper i assume will fund half of this. given the are paying a promoted rated, best to go with the cheaper option now and follow up tazerka when spend equates to ownership

I personally would not mind if they did drill a shallow target in South Madura. The shallow target mentioned by Greg Hancock also seems promising

what would I do
1) farmdown Bargou including Hammamet and shallow target to reduce exploration spend to as close a zero as possibel
2) commence buy back - i dont buy the argument that buy backs are not effective, cant look at current market where market has dropped 50%. buybacks should be used to decrease shares, when market and oil recovers, SP recovery should be stronger. It will be very value accredidtive to do one now
3) increase PEL 92 drilling, as many drills as possible given the right analysis
4) pursue small domestric opprtunites given weak currency, oil price and market vs international ones

I agree with your commentary that after exit of Seruway the cash position is unlikely to fall over the next 12 months. in addition a cheaper Hammaet drill and a farmout of Bargou will provide a few very existing opprtunities. MS told me last that driling for Bargou and Hammamet likely to be in 3rd qrt of 2009, by that stage we may have a higher oil price and some more domestic reserves. The shareprice in my view will have moved much higher by then