what a rip off...

http://aspect.comsec.com.au/asxdata/20080815/pdf/00869932.pdf

...Eddie Smith, Impress’ Chairman, through his group of private companies has agreed to provide Impress with a drawdown facility of $2 million. This facility will provide the Company with certainty of its drilling commitments....

...The terms of the facility are a simple 1.5% facility fee on the $2 million with interest calculated daily at
11.5% on draw down funds....

So by providing a 2m funding facility, Smith is set to get 30k set up fee, plus 11.5% on amounts drawdown. Holy cow, the last I looked the 90 days bill was actually dropping rapidly. Talk about conflict of interest. Given their 2P reserves at Mirage and Growler, they can surely obtain a 2mn facility from one of the banks at lesser rates?

Glad I don't own this mob, ES runs it like it is HIS company. Perhaps one of you who does hold should remind him the concept of shareholders and tell him to pull his ego in!

618

PS. I see the price is up 6.6%. Why would people like this news?

PPS. Cannot believe OGW continues to nominate this dud as their pick in the "how to make a million" porty. There are so many quality stocks out there with rock solid asset and cashflow, and an MD who's not so self-serving.