A good rundown of where we sit is on pages 54-55. There is the...

A good rundown of where we sit is on pages 54-55. There is the more positive outlook, and also negative possibilities outlined. Snippets of each below...

"The Group will continue to manage its activities and intends to put in place all such arrangements (including financing or commercial arrangements) to ensure that it has sufficient cash reserves to meet its existing budgeted expenditures for the next twelve months from the date of this report. For further details of future commitments refer to Note 13 and 31. In the opinion of the directors, the Group will be in a position to continue to meet its liabilities and obligations for a period of at least twelve months from the date of signing this report, because the Group believes it has financing strategies and commercial plans in place to be able to secure and execute its planned activities over the same period."

"The opinion of the directors has been determined after consideration of the abovementioned subsequent events, the Group’s cash position and forecast expenditures and having regard for the following factors: • The ability to raise capital under the Corporations Act 2001, if required, by a share purchase plan, share placement or rights issue including any necessary approval from shareholders; • The option of selling part or any of the Group’s subsidiary companies or any of the Group’s direct working interests in its assets; • The option of farming out all or part of the Group’s assets; • The option to reduce, delay or otherwise deal with the forward development capital and or exploration expenditures of the Group (in particular the Senegal Joint Venture); • The ability for the Group to re-commence financing activities from other sources of funding including but not limited to: i. Senior debt; ii. Subordinated debt; and iii. Hybrid financial instruments; and • The option to default on obligations in respect of, or withdraw from the Senegal Joint Venture."

"In order to maintain the Group’s rights and interests in the Senegal joint venture, the Group is required to meet its joint venture funding obligations. Should the Group not succeed in securing appropriate funding, there is an option to default on its obligations in respect of the Senegal Joint Operating Agreement and RSSD Petroleum Sharing Contract or withdraw from the Senegal Joint Venture. The maximum default period allowed under the Joint Operating Agreement is 6 months. After this period, the Group would give up its interest in the joint venture without compensation and the Group may be required to make certain payments after this with respect to obligations payable at the time of default and over the default period. The directors continue to take legal advice in respect of the operation of the default and withdrawal provisions of the agreements."

" In the event that the Group is unsuccessful in implementing one or more of the funding options or other initiatives listed above, such circumstances would indicate that a material NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 201954uncertainty exists that may cast significant doubt as to whether the Group will be able to continue as a going concern and therefore whether it will realise its assets and discharge its liabilities in the normal course of business and at the amounts stated in the financial report".

They at least seem to have an awareness of what needs to be done...now the question for them - can they do what needs to be done??

dodds