whats happening, page-23

everyone has a choice in what they invest in.. adi is not the apple of my eye, its just a great investment for me..

comparing the acreages, lets say longhorn and ipanema to the 23,000 acres now secured in the jvp is a difficult task for me, and i maintain i will not consider any entry into this aut share unless aut properly and clearly define where the acreages are, and whether they are continuous acreages. once that is revealed i can then see if its north or south of the karnes fault, and compare the handful of wells that have tested the chalks in the longhorn/ipanema region and make my own judgement on its quality.

i have idea of where the longhorn acreages may be, and i have a very good idea of the jvp 23,000 acres. but investing on the say so of someone without any evidence given on the acreages to me means unproven acreages, and is not my game to believe what i read, i need evidence the play is seen in the region.. i prefer being closer to the discovery well right now, and clearly a region that has natural fractures has been demonstrated in recent drilling activity in kowalik. but without knowing how close the faults are to kowalik to the north of the well, i am hesitant on aut currently..

lastly, i see the 23,000 acres as far more than enough for any of the smallcaps to handle, extra acreages with higher ownership (up to 80%) is also meaning massive costs for aut for exploration drilling, and equally a massive return on success.. i look at the TCEI and meridian forumla of having a 50% maximum ownership in acreages with farming out the acreages as a prudent and wise formula for success thus far. the high ownership of leases imho is a very big reason for me to feel uncomfortable about the risk reward profile.. others will not agree and are investing accordingly.. i criticise no one for investing in the opportunities they see with aut..

keeping a close watch on it,, but happy in adi with the free carry in indonesia and the yemen exploration wells coming up, along with other opportunities that will arise for adi.. i guess i see adi haveing high quality worse case scenario insurance in these upcoming projects they have. they are certainly not one play wonders imho.


its all imho and dyor