RP Newsletter May 2007

The main national body representing Australia's oil and gas exploration and production industry, APPEA (Australian Petroleum Production and Exploration Association), held its annual conference in Adelaide from April 15 - 18. The conference was attended by more than 1600 delegates from the oil and gas industry and represents the largest annual gathering of the upstream oil and gas industry in the Southern Hemisphere. For the first time ever, RP was represented at the conference, sharing a stand with Roxar.

"RP's presence at the conference was to promote our consultancy and training services to the industry," said CEO David Callaghan. "We will try to attend as many of these conferences in the Asia Pacific region as possible as it gives us the opportunity to tell the oil and gas industry what we can do. RP prides itself to be one of the few companies in the market that can mobilise a subsurface team into a client's office to work on a specific project," Callaghan said.

David and Paul point out RP's fine qualities

Paul Dominic, RP's General Manager said such conferences provided an opportunity for the company to find alliance partners to complement its capabilities, and to meet potential clients. Sharing the stand with Roxar also provided a learning experience in the event RP were to have their own stand in the future."It was a good forum to get a feel for the activity levels in the industry and its future trends. It was a very exciting time to observe and feel the buzz of the deal-making that was going on during this APPEA conference," he said.

On a lighter note, he said he was the only RP representative to "Barry's Jog" which was held every morning of the conference. Although here was no 'official' run on the last morning, he did turn up, believing that some others might, but ended up running along the Torrens on his own. He attributed it to the dinner dance that was held the night before!

After hitting a seven-month high of almost US$69/bbl in late March/early April, crude oil prices moved lower with the easing of tensions between Britain and Iran. Prices have continued on the downward trend, despite news of the kidnap of expatriate workers in Nigeria and fears of stocks shortfalls in the US ahead of the peak summer months.

Gains on international equity markets combined with intensifying corporate interest in Australian stocks underpinned a 2.9% increase in the benchmark S&P/ASX 200 Index during April.

Orica has become the latest company to receive a takeover proposal from a private equity consortium. The Board rejected an indicative proposal to acquire the company for $32/sh, saying it ".significantly undervalues Orica and its growth prospects." Other companies believed to be potential targets include Foster's, Brambles, James Hardie, Tabcorp, Aristocrat, Amcor, Ten and Fairfax. These companies often share similar traits including strong free cash flow, low gearing and some form of underperformance.

US stocks rallied above 13,000 last week for the first time in late April, drawing strength from a spate of better than expected first quarter corporate earnings. According to Reuters estimates of the 177 companies who reported earnings in the last week of April, 123 beat consensus estimates, 22 were in line with expectations and 32 missed estimates. The bullish tone on Wall Street was further reinforced by the ease at which investors shrugged off last week's disappointing first quarter preliminary GDP report (1.3% p.a. vs 1.7% expected).

Commodity prices have generally improved over the past month led by a 10% + surge in copper and nickel.

Global Indices
	Level	Month Chg (%)
S&P ASX200 (Aust)	6166	+ 2.9%
Dow Jones (US)	13063	+ 5.7%
S&P 500 (UK)	1482	+ 4.3%
FTSE 100 (UK)	6449	+ 2.2%

Source: IRESS. Data as of 30/04/07

Commodities
	Price	Month Chg
Gold	$678 USD/oz	+ 2.2%
Oil (West Texas)	$65.80 USD/bbl	- 0.2%
Copper	$7,824 USD/t	+ 12.7%
Nickel	$50,100 USD/t	+ 10.7%

Source: IRESS. Data as of 30/04/07

Source: IRESS. Data as of 04/04/07

Energy Focus

Movers and Shakers

Company	ASX Code	Gain	Last Price	Comment
Deep Yellow	DYL	+62.7%	$0.675	Spot uranium hits US$113/lb. Paladin increases stake
Gloucester	GCL	+34.4%	$4.84	Xstrata makes $4.75 per share cash offer
Resource Pacific	RSP	+24.3%	$1.765	Coal sector consolidation speculation

Source: Sentinel Financial Group & IRESS. Last Price and returns as of 30/04/07

Company	ASX Code	Loss	Last Price	Comment
Petsec Energy	PSA	-12.2%	$1.66	Continued pressure on share price
Centennial Coal	CEY	-10.5%	$2.90	Another profit downgrade
Anzon Australia	AZA	-9.8%	$1.10	Basker/Manta productions probeems in Q1 2007

Source: Sentinel Financial Group

Who's Making News

Tin Rattlers

Company	ASX Code	Details
Berkeley Resources	BKY	$23.1m placement for Spanish uranium exploration & business development
Curnamona Energy	CUY	$6.4m placement for leach trail plant for Oban uranium deposits, SA
Encounter Resources	ENR	$4.3m placement for Australian uranium exploration
Nuenco	NEO	$3m placement for US oil/gas drilling programs
Strike Oil	STX	$8.8m for Gulf Coast US gas/oil drilling projects

Source: Sentinel Financial Group & IRESS

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Source: IRESS. Data as of 04/04/07

Energy Focus