nathanblack,Yes I agree the delay in getting the production...

nathanblack,

Yes I agree the delay in getting the production licence has been very frustrating indeed and I feel it is really holding back the share price.

However it is also something slightly outwith the company's control and until the government issue it there is not that much the company can do. Its part of the political risk of doing business there and to me explains why the share price is where it is rather than much higher to better reflect the value of the oil found so far.

You have to give credit to the company for acting in good faith, I mean they applied for the licence extension and got it and have completed the seismic survey way ahead of schedule, and they have drilled J-53 much earlier than they needed to as well.

They are holding back from raising more funds at this time because they know it will be dilutive to existing shareholders. They can wait a little longer while the new reserve report is done and hopefully the production licence granted. Both of which are likely to cause a rise in the share price.

At which point they will raise some more funds as they need to build some infrastructure to get the oil to the market place domestically and internationally.

I'd much rather see them do it in small steps than have one big fund raiser, that way dilution to existing shareholders is kept to a minimum.

At some point some institutional investors are going to take notice and buy in. As under 300,000 shares makes the top 20 shareholders.

You just need to go back and look at the research reports to see the value here already, especially the 3rd March 2011 report. It shows the effect production rate and price have on the company's value, well it looks like these well will start out in the 550-600 bopd range and the Brent oil price is above $120 nevermind $90.

THe new reserve report should be adding something like 10 Million barrels to the 2P reserve number, making the company look an absolute bargin at the current shareprice.

Just need the production licence and production to start to move to the next level of a $1+ I'd say.

LOTM