weakness full of selling pressure, page-6

I suspect it wont go much lower than .08 and may even rebound in the short term.

Why?...

1. Strong oil prices for foreseable future.

2. Oseil finally producing.

3. Bulla field production decline not as bad as expected.

4. Additioinal two infill-wells being drilled which should be online quickly (expect extra 50-80 bpd)...announcement out soon.

5. Announcement due regarding current quarter profit.

6. Energy services division (drilling rig) currently generating profits

7. Increased chance that the LTS plant could actually be utilised given Indonesia's new LPG supply contract with China. (KRZ now %100 ownership)

8. Sole risk wells to be drilled mid year?


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I feel for those who got stranded during the recent buying frenzy...however suggest they wont be unhappy if they show a little patience.

Most of the Oseil start-up expenses are over and the imminent cash flows should help KRZ post a profit for Q3 & Q4. Given the new team at the helm, I am quietly confident of seeing the shares trading between 1.5 - 2.0 by the end of the financial year. This would see KRZ with a more reasonable market cap of about $16m - $22m

Resistance was always going to be at .09 but the DT's got a little too excited and pushed it too far too fast. Now I think we might need to see another 150m-200m shares trade before it can get back up to the 1.2c levels...we need to clear out the .06 share placement from last year.

I currently hold KRZ (paid .06) and am looking to pick up some more at .08...however fear I may end up having to settle for .09. I recently sold half my holding @ 1.2c which means the remaining shares are free anyway...so I am quite happy to just sit back and watch for a bit.

Good luck everyone.

Cheers!