coi running... new coal seam gas co, page-3

shane, I'm a bit ambivalent in valuating the merger - 128 million shares for $8 million and some NZ CSM-assets with a unclear value is a lot ...

But on the other side the company wouldn't be able to rise $8 million in the current financial environment and "runing out of cash" is definitely avoided.

I fear they still have to farmdown the Galilee permits later to secure funding of operations (but perhaps they will regain a higher WI as they would get these days...)

I don't expect that they use the funds to secure their position in the US projects (resp. their share in CRR).

Pine Brook Partners still have to invest about US$ 10 Million (to regain a 80% share in CRR) - the only chance for COI to keep the 20% stake would be (imho) that the projects are self funding after this stage of investment. So any more success at Florence and perhaps at Grays Habor would help to keep the 20% stake in CRR.

I think one should see the US projects like a "private equity" investment; grow the value of the leases over the time and sell the projects on the right time to fund our CSM core business. Just my thoughts ...