up to the poms now!, page-2

Hi Jballs

Yes unfortunately the story has not been picked up by local smaller investors. And I think there are probably a number of reasons, not the least of which is that EXR is an unashamed pure explorer. However, I think it has also got onto the fundamental change in UK government policy towards North Sea acreage at a very early stage. It has picked up what I believe to be fairly prime blocks using the skill set of its well qualified management and that of the Granby team who were all ex-Enterprise Oil. Enterprise Oil was a successful North Sea explorer until its take over by Shell several years ago.

The shares are tightly held and in Australia mostly in Perth where the sponsoring broker Argonaut Securities is based. I understand that shares were picked up by professional investor clients of Argonaut at the IPO.

Since then there have been two (I think) placements in the UK to instos at prices compared to current market of slightly lower for one, and slightly higher for the other (I think). That gives me a lot of confidence in the story. Also Fidelity, whose stock picking ability is well renowned and they are the second largest shareholder.

The other factor against this company is the lack of coverage by brokers. I believe there are only two brokers who do any analysis, one in UK and the other is Argonaut. Both cater to professionals and/or instos.

fyi I have heard a risk adjusted valuation estimate from one of the brokers made before today's announcement of above AUD5.00 per share!!!!!! As Acturtle said....patience is required but the reward potential is enormous.

Do your own research.

regards
DF