trading halt, page-9

I had been under the impression that Petsec would finance Vermilion out of cash flow and seek project finance for China.

I do recall that Petsec had intended originally to seek a farm in partner for Vermilion but when I last raised that with them they said they would only exchange an interest in Vermilion for an interest in another lease.

I don't see this announcement as necessarily negative. PSA is in the box seat at this moment to get funds and it is a hot sector right now in the US with gas prices poised to break through US$ 7.00.

I think somebody has probably approached them to do a deal, be nice if it was a Woodside or Santos.