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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: FIFO_kid2 who wrote (34212)	3/28/2009 7:02:33 PM
From: Crossy	Read Replies (1) \| Respond to of 37387

Fifo, the new slides talk about capex of $300m this year... this will also unlock the gas stream value - unlocking cashflow streams previously flared literally. The kickbacks are not a material problem sicne they state this in the recent report. Besides, they are being taken of and as a UK listed firm they are not subject to the US legal regime (called FCPA or similar).... which would be a different matter. they also did NOT renew one drilling rig, their captive rig was refurbished and can now be used again. They booked new rig slots for the Khazar rig but I get the impression that the rates were renegotiated. Finally they are sitting on $875m cash and no debt. The planned capex should easily come from current year cashflow (assuming $50 Brent)at laest most of it. What is more a good deal of the capex is infrastructure (40%) to lift poroduction capacity to 100kbopd + gas. best to you CROSSY