MESSAGES

I have a hunch that the B-80 D1 wells are not meeting production expectations, despite Baker Hughes attempts to clear the clogs. If their efforts were successful, we would likely have received an update by now...... it has been nearly two months since they began the operation. The movement in share prices seems to confirm this suspicion. Based on HOEC management,s history, they probably going to disclose any share-price affecting news only during the coming quarter con-call. So, in the short term, you may see a significant downturn. However, in the long term, an year to two, this counter looks very promising with significant upside, despite the conditions of B-80 wells, if the oil stays above USD70.