riding high - have a bet also!, page-9

Hi BB,

Good to see you back. You have said they just got $66M from the REDP, and I have seen this said many times before for this and several other companies - but is that really right?

As I understand it the REDP funding (and the drilling funding) are payable on the company meeting certain milestones. In many ways this is a reimbursement after the event.

My point is that the companies often have to find the day to day financing for their operations and they only get the money when they are done.

So whilst Governments are always keen to say that they "don't pick winners", the very conditions of their funding entrench a situation where only companies that can make it to the milestone under their own steam are rewarded.

If I'm off the mark here please let me know - I haven't gone back to research it in detail and I may be talking through my hat.