where to from here, page-5

rogar,

You are right with everything you say.

Of course this is all speculative.

And you are right that AED is making a loss and there are plenty of companies making a profit. But that’s my point. There is big upside when a company moves from loss to profit and AED has the potential to do this.

Well run companies making a profit are priced accordingly by the sharemarket.

AED is also priced accordingly by the sharemarket, ie at a discount to cash because it is producing oil at a big loss.

What I am saying is that if AED can manage to increase production by significant levels then they can turn around their operating performance and make a profit. Their shares will then be priced to reflect that.

The SW portion of Puffin is looking like it may be able to offer this production increase and a tie-back to the FPSO would be feasible.

P13 will be an important well because it will have the potential for significantly increased production. I know this is speculative, but all oil drilling is a speculative business.

The fact remains that any success at P13 will make connection of the SW field to the FPSO a priorirty for the JV.

And you are right again, I am banking on hope. But I think everyone buys shares with the hope of making money.