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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Edinburgh Oil & Gas - Updates to reserves in prospect

March 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Scottish-based, Edinburgh Oil & Gas was a little known oil prospector until 2001, when a consortium operated by EnCana, in which it had a 5% stake, made the largest oil discovery in the North Sea for 25 years.  Appraisal reports of the find, known as the "Buzzard" project, based in the Moray Firth, have since confirmed the presence ofrecoverable reserves in excess of 400 million barrels of oil.   At a stroke this took Edinburgh's reserves to at least23m.   Edinburgh was originally a small-time developer of low risk on-shore fields, close to where discoveries have already beenmade.  But the company is selling these off in order to focus on maximising the value of its Buzzard stake.  Last ye ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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