Hi, Paul.

PE> FM> The Gawler Craton

PE> Who's that?

You should get out more. :-) If you read the business pages in the
popular press you will have seen over the last couple of weeks an almost
continuous torrent of reports on the Gawler Craton - basically, it's the
whole of the middle of South Australia. About 8 or 9 companies are
usually mentioned, including Helix (HLX & HLXO) who *doubled* their
share price in one day.

PE> FM> has had a lot of press lately. One company which
PE> FM> hasn't been mentioned is Lakes Oil (LKO).

PE> Is that good?  To buy?  BFN.  Paul.

Do I have to spell it out for you? That was supposed to be a subtle
hint.

One company which has not yet been mentioned, except in a very small
reference in one of Huntley's publications, is LKO. LKO is an oil
company which has never found oil. What a lot of people don't seem to
know is that they've got 30% (or 35%?) of Minotaur, which is RIGHT NEXT
TO Helix. LKO has 4 things going for it...

  1) Although a lot of people in my business are probably aware of it by
     now, because they/I watch the market, it's not been written up in
     the papers. If we get one report in say the weekend papers'
     investment section it'll be worth 2 cents (IMHO) on the share
     price.

  2) They are actually drilling for oil now (well was spudded last week)
     - they might find some. IMPO I'm not expecting that to happen.

  3) They might find gold in the Gawler Craton, or someone else nearby
     might.

  4) They foreshadowed in their annual report, and reiterated in an
     announcement last week, that they intend to float the gold
     interests off as a separate company. In order to do that they need
     shareholder approval. In order to get shareholder approval, it has
     to be a good deal for shareholders. I think it will be a very good
     deal for shareholders.

They closed today at, I think, 6.2/6.3. I think that's cheap. Your
decision. I own a million, ish.

Regards, f'IM.

 * * Don't try to fix nothin that ain't broke!
@EOT:

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