what if no sengal, page-7

Hi Elguido,

Took your advice and rang. Michael was not there but spoke to another person. Obviously couldn't tell me anything not announced. However said we should get announcement on both wells at Waller very soon. Seemed quite positive on both the terms they got for drilling and the position they had.

Asked hypothethicaly what if no farmin of Sengal by November. Was told something will happen by November. I asked if an extension would be asked for and impression I got was no. That if by November there was no farmin in the option was that Hunt and FAR could go it alone. However in saying that the first objective is to get a farmin and they are still postive they will get someone. There is a significant amount of data to process and they expected it could take some time for potential farmin's to analyse the data.

Overall feeling I got was that they are still optimistic that they will get a farmin in and if not they have no intention of extending. By Novemeber they will be taking the option to drill either way. Not my words. To tell you the truth if they did go it alone there maybe some more short term volility and they'd need to raise more money. But when they spud with no dilution watch the sp rocket. Still my preference is they announce a major farmin in a month after good announcements on Waller.

So am feeling a little more comfortable. Don't bag me for not being blindly behind them as some are. There are risks and if you're not at least somewhat concerned in this market then to put it bluntly you're not being very smart.

So between now and Novemeber there will be some very good releases.

Good luck.