Ann: Close of Pro-rata Renounceable Rights Issue , page-7

re: Ann: Close of Pro-rata Renounceable Right...
That is my thinking as well, Polpak. PAX made a major error in not keeping the shareholders informed on SAL-1 so that it appeared as a failure. As it was the first well, shareholder confidence had nothing to fall back on. The real truth of the situation I suspect is more along the lines of, the well could be made to work by cleaning up its surface, but even if we do that then we couldn't afford to drill SAL-2 anyway since the Aust. government is not doing anything on establishing feed-in tariffs. Therefore better to put a cork in SAL-1 for the time being and get on with cheaper projects in Indonesia with revenues guaranteed. However, PAX management didn't have the forthrightness to tell us that. Major blunder.

Now PAX has tested the market for capital and raised nowhere near enough to make significant progress. This in turn will restrict share price rise, an awkward Catch-22 situation.

Juke