vermilion #2 where is it at?..., page-8

Hi Yogi,

Spoke to company about size of production platform and foreshadowed extra drilling. They agree they have "not explained" the reason for the capacity of the platform and allowed that the the foreshadowed extra drilling later in the year is not the drilling all ready scheduled for Vermilion East or B Location. Extra wells at Vermilion West will be contingent on results of V#2 which should be announced in a "couple of days".

They did allow for the possibility that Vermilion East wells, if successful, could be tied back to the Vermilion West production platform by a sea bed pipeline but agreed that this had not been the original intention.

Looks to me like they have got a bit more at Vermilion West than they had expected. This lease is sandwiched between two adjoing leases, one to the north and the other to the south, which together have produced in excess of 500 bcf. And the predominant producing sand in both leases is the "G" sand that Forest Oil drilled into in 1988 and Petsec proved up with Vermilion #1.

Speculation (or a leaky rig) may account for the recent strength in the share price which as carpediem notes closed at an aussie equivalent of $1.42 overnight. Usually the US market follows rather than leads the ASX.