RP Newsletter June 2007

Landmark is one of the world's leading provider of software and consulting services to the upstream oil and gas industry. They already have an established business in the Middle East and have country managers in the North and South Gulf region, Saudi Arabia and Oman. RP's CEO, David Callaghan said, " We will be able to play a role in training, recruitment and consulting, and help work together in forging a strong subsurface consultancy service for oil and gas projects in the region."

Frances and Sid sign Landmark document!

He said this was in line with RP's aspiration to grow its consultancy and training arms. He emphasised RP's niche oil and gas field development planning capability which enabled it to win this important partnership in the Middle East. "Our ability to provide fully integrated expertise and services spanning petrophysics, geophysics, geology, reservoir engineering, production technology, well design and construction, is what Landmark/Halliburton are looking for," he said.

David said RP would continue to seek out more partnerships in the near future to further its presence in the oil industry both locally and globally. He said with RP's reputation he was confident that this was an achievable target.

After clinking champagne glasses and signing on the dotted line, RP's Director, Frances Corless, said this agreement was a significant step for the company as it enabled RP to make forays into the Middle East market. She said all forthcoming work in the Middle East would be done through the Landmark/RP alliance . "It's a huge step for us and will allow us to get a foothold into the Middle East," she said

In recognition of the importance of the region, Halliburton recently moved its corporate offices to Dubai. Its CEO David Lesar told a briefing in Dubai recently that out of a potential oil services project market of around $100 billion a year, at least 70 percent is outside the Americas. "If you look at a map of global oil and gas reserves, the focus of our business and industry is clearly moving to this part of the world," he said.

Frances signed the agreement with Landmark's Regional General Manager, Sid Williams at a ceremony in Dubai. David and Thijs Rademaker, Landmark's Regional Services Manager for the Middle East, witnessed the proceedings.

CHAMPAGNE TASTING

Australian stocks edged higher in May managing a 2.4% gain. By the end of the month no clear market direction had been established and 1% daily gyrations were becoming increasingly prevalent.

Ongoing uncertainty about the sustainability of current strong economic conditions in China and the potential "bubble" forming in its share market have been key contributors to our market's recent volatility. Former US Federal Reserve Chairman, Alan Greenspan has become the latest high profile identity to air his concerns, saying he sees a "dramatic contraction" ahead for China's stocks.

Locally, the float bonanza has continued unabated through May with a stream of IPO's hitting the boards. So far this year some 80 companies have listed on the Australian Securities Exchange compared with 193 in 2006.

In the past month, two high profile companies have made spectacular debuts on ASX. Shares in well regarded fund manager Platinum Asset Management (PTM) listed at a 70% premium to its $5.00 issue price, delivering tidy profits to retail investors and elevating company founder, Kerr Neilson's wealth to about A$3bn and into Australia's Top 10 rich list.
Slater & Gordon (SGH) has become the first legal firm to list on ASX. The stock is currently trading about 70% higher than its $1.00 issue price. Press reports suggest SGH's move may entice other large legal firms to follow suit and several are reported to be considering abandoning their traditional partnership structure and incorporating.

Global Indices
	Level	Month Chg
S&P/ASX200 (Aust)	6313	+ 2.4%
Dow Jones	13633	+ 4.4%
S&P 500 (US)	1530	+3.2%
FTSE 100 (UK)	6602	+2.4%

Source: IRESS. Data as of 31/05/07

Company	ASX Code	Gain	Last Price	Comment
Arrow Energy	AOE	+35.8%	$2.58	Signs LNG Export HOA for Gladstone LNG facility
Qld Gas	QGC	+30.5%	$2.20	Coal bed methane remains in favour
Amadeus Energy	AMU	+20.8%	$0.87	Shares recover from two year low

Source: Sentinel Financial Group & IRESS. Last prices and returns as at 30 May 2007

STOCK IN FOCUS - RIO TINTO

Rio Tinto has made headlines over the past month as rumors and speculation have filled the market about a possible takeover offer from BHP Billiton. Rio Tinto has denied these rumours but this hasn't stopped the hype surrounding the world's largest and third largest mining companies.

As the rumours broke on May 9, RIO surged to close the day at $95.50 up $7.55 from the previous days close. At one stage the stock had gained 11.1% to $99.69 (its biggest daily gain since 1987), almost making it Australia's first blue chip company to reach $100. BHP also rallied hard, reaching a high of $32.58 before closing at $31.93 up $1.13 (+3.7%) from the previous day's close.

In this buoyant Australian share market where takeover activity is ripe and mining companies continue to enjoy an extended period of higher than average commodity prices, analysts believe that it won't be long before a major resources company is the subject to corporate activity.

A possible merger of Rio Tinto and BHP Billiton would rate as the world's largest mining takeover and would result in the formation of the world's largest mining company. Even though this is just speculation at this stage, the current market and the respective company conditions do make a takeover a very real possibility and something that will be monitored with great interest by mining companies and investors worldwide.