surprise west, page-40

I'm not sure if this point has been discussed about CTPO before but if my memory stands correct, CTPO were offered as sweetners to prior CRs. I took part in several of those CRs where the offer of the options played a major part in my decision about taking up the CR and I expect many other participants were also persuaded. If those funds had not been raised by these means, CTP may not have got to where it is today.

Therefore, IMO it is reasonable for holders of CTPO to want the exercise date of CTPO extended. No dounbt there are some who oppose an extension bcos it will be dilutive for them but some of these cashed in their CTPO. I accept that the company will not extend the exercise date (for various reasons) but I would support the company issuing replacement CTPOs to current holders for free or for a nominal amount.

The main reason I am supportive of replacement CTPOs is that notwithstanding that options are a riskier investment and there are inherent delays in the O & G sector, I do not believe that CTPO were given a reasonable opportunity to get into the money as a result of the time wasted from the internal management wragglings and sackings that occurred not to mention the drilling rig debacle that almost destroyed that rig. These events were not normal every day occurrences that might have been reasonably predicted and the the company is responsible for the internal management issues.

ANZ