Vooni, understand that the stock surged from 7 cents to 26 cents...

Vooni, understand that the stock surged from 7 cents to 26 cents in a matter of days - a remarkable achievement in any market let alone the current one. The publicity that the KN1 gas discovery has generated, from influential and well-regarded sources in particular, is evidence that the stock is not at all 'loveless' as you suggest. The stock has settled to levels regarded as fair value given the information available about the discovery, although the stock does find itself under fairly heavy downward pressure due to day-traders seeking a quick exit because the Company did not disclose flow rates from the temporary testing recently undertaken. Each to their own.

Peter Strachan today mentioned in his report that the illiquid small-caps are suffering from low volume selling that is subseuqently moving prices down. I believe Key Petroleum is a victim of this, given only 86 million shares on issue, most of which are held by people with an LT view.

Furthermore, I was reading an article in the business magazine 'In the Black' about two or three months ago which talked about the prospect of ASX-listed resources companies listing on an Alternative Investment Market such as the London AIM, the TSX, or the GEM, simply because Australian investors have a hard time placing fair value on resources companies operating outside of Australia. The article specifically referred to ASX listed Vulcan Resources, the CEO of which confirmed Australians tend to have their heads in the sand when it comes to fair value of companies operating offshore. I believe Key Petroleum are suffering from this too. You never know, Key might see a dual listing sometime in the near future in order to realise fair value - our Chairman Ted Ellyard dual listed Hardman Resources on the ASX and AIM, and the other company that he chairs, ASX-listed Bonaparte Diamonds currently operates with the view of listing on the AIM later this year.

But fair value will be realised soon enough, especially as drilling in the Po Valley draws nearer which if successful, will catapult Key Petroleum into the top tier of Australian oil and gas exploration and production companies.

SS.