Ann: Market Update, page-135

I'm getting the feeling that the OD JV is going to prove problematic longer term to CHK. If we are haggling over expenditure of $1.5m, it would seem that the relationship is not entirely friendly. We are in court after all over proving $1.5m (I think). JV partners need to be happy bedfellows.

Pure speculation on my behalf, but another angle the 20% owners of ODPL might try to take is to convert its 20% in ODPL into ownership of CHK directly.

This would relieve ODPL joint venturers of the cash flow obligations to pay for their 20% in the JV. This would allow the OD properties to be owned and funded 100% by CHK.

A much more straightforward ownership structure.

CHK has other properties which it currently has rights over (Wee MacGregor and their QLD exploration licences), which would have some value so it need not necessarily be a straight 20% swap OD equity for CHK scrip. Possibly between 16%-18% of a diluted CHK.

Remember that 20% of ODPL is owned 75% by Cyprium Resources PL and 25% by Weststar Industrial Ltd so there would not be the 20% TO threshold breached if this swap was to occur.

Pure speculation, but the above issues will come out sooner or later methinks. The downside is that we would also have a major shareholder on our register if this was the case.

If there is a major find here at OD, it would be hard to see CHK developing it by itself. It would be bought by a larger entity...whoever that might be.

Enjoy the long weekend peeps!