what is wrong, page-13

That being said it is a real shame that the company are having such difficulties getting permission from the Italian Government. The company can certainly not be accused of incompetence since they established the Borsano#1 gas target more than six months ago, and 'multiple' leads have been identified since then. In my opinion, the frustration of the KEY management was conveyed in the latest Quartarly Report in which managing director Ken Russell stated it has become a rather 'time consuming affair.' However it is possible to argue that in theory, the longer the process is delayed the closer the company gets to drilling.

It must be said that this delay does not at all augur well for KEY's plans in the Po Valley. If they are encountering such delays in spudding the well, then I can only imagine the difficulties that will be encountered in hooking-up the project for production pending successful exploration.

I'll leave you with this quintessential example of Italian Governmental organisational skill. A friend of mine wanted to spend a year in Italy. He applied for his visa six months in advance and had not heard a thing when he was due to leave. The Government said they would get right on it when he arrived in Italy and sought him out with a visa. So they gave him a one-month tourist visa in the meantime. The one month tourist visa expired and he spent another eleven months in the country effectively as a clandestine illegal alien without hearing anything about his visa. He got through the airport in Milan and no one said a thing. Then got his visa... having been back in Australia for six months. A whole TWO YEARS after he applied and 18 MONTHS after he needed it.

Don't hold your breath...