HKN Inc fka HKNI

[Tr8dervic]

The SEL.V is a modest investment of 2.6 mil canadian. About 2.26 mil USD.

2.6 million units @ 1.00 CAD each. 1.3 million wts exer @ 1.15 CAD for 2 years (exp. 12/18/08)

Just like the 11.9 million shares of LSE/ AIM listed GED that HEC owns, it is very simple to track the value of these investments and apply it to HEC's overall value.

With HEC trading near book value, this is a very safe investment with low downside. Lots of cash and no debt.

However, the upside seems to be limited to the .75/.90 area for the forseeable future unless A) GED has a tremendous runup to it's previous highs of 350 pence from current 120 pence level. B) Dramatic positive test results are reported from Indiana CBM project or C) Current production can be pushed above 10 MMcfe/d. (About 9 MMcfe/d right now...60% gas and 40% oil).

I'm looking to load up at .45/.46 level if .49 52 week low is touched and causes stop sell weakness. I'll pay closer to .50/.51 by month end if need be.

Vic