Skycop, before you start the name calling this has been a developing story for a long time now, just the market was unaware.Now as the deal is about to close the value is finally being recognized.In late March 2007, JOL received a letter (the "Approval Letter") from the Minister of Tourism wherein the MOT notified JOL that the Government of Oman had approved the development of the Omagine Project.

The Approval Letter specified certain commercial terms to be incorporated into the Development Agreement and JOL and its attorneys are now continuing the Discussions in order to get clarification on some of the commercial terms specified in the Approval Letter and to finalize the Development Agreement. JOL management  anticipates  to finalize such commercial terms and the documentation of the Development Agreement by June 2007.

JOL will own eighty-five percent (85%) of Omagine Co, J&P will own fifteen percent (15%) of Omagine Co and the Government will not own any equity of Omagine Co. JOL has been informally advised by local real-estate agents that the present value of the Omagine Site is in excess of 130 Omani Rials (USD $350) per square meter or a total value of USD $350 million.

Pursuant to the draft Development Agreement now being discussed, Omagine Co's rights of use and ownership of the Omagine Site will be represented by a "Usufruct Agreement" wherein Omagine Co is granted a fifty (50) year lease over the Omagine Site at an annual lease cost of USD $0.80 per square meter, except that the lease cost during the first five years of the Usufruct (the construction period of the Omagine Project) will be zero.

The Projected Financial Model presently predicts an internal rate of return ("IRR") for the Omagine Project of 20% and net positive cash flow in excess of USD $600 million (the "Projected Cash Flow") over the five year period immediately subsequent to the signing of the Development Agreement. As of the date hereof, the "net-present-value" of such Projected Cash Flow is projected to be approximately USD $300 million.