Ann: Operations Update , page-9

Sorry Not been around for a few days,

My first thought was "horrible deal" 15% interest rate for $3M seems expensive to me to say the least.

However on reflection, while I still think the interest rate is OTT, there must be a good reason they have chosen to go this route.

I don't doubt that either of the big 2 investors would have given them the money if they needed it and had asked them for it.

They didn't give any stock options or equity conversion rights either, just a pure cash transaction, so they don't want more equity dilution.

I'm also pretty sure with the rate of production that they are now going to have, with J-51 & J-53 free to produce. That they could have done a fairly large forward oil sale to get that amount of cash in the coffers upfront. Again they didn't choose this option either.

So I think there is something going on behind the scene's that we are not privy to yet, that made them go this route rather than use a route they have used successfully before.

Especially when you consider that they were under no obligation to drill J-59 now, The licence terms are now good for 18 months+ following the drilling of J-58.

So reading the tea-leaves as I see it, they must be very confident about the likely outcome of J-59 and want the data quickly, maybe they are trying to get it included in the CPR report due this quarter.

The higher the number the more attractive the company will be to a potential bidder ...........

Just my thoughts

LOTM

PS can't believe the share price has fallen back as much. Will have to look behind the sofa again to see if I can find anything there.....so much good news to come the quarter.

LOTM