rci ends takeover negotiations with jindal

Well its official now. As stated in the Quarterly activities report. That is what the rest of the market took away from the announcement of the other day (as did myself).

So much potential, its a shame about management.

The SP now resides on the success of the drilling program. But what is not so great is that RCI are competing against another 2 applicants for the EPC over EPC890 and the QLD government has not yet made a decision on who has owenership.

I can now sort of see what happened. RCI have been sitting idle on these tenements for a number of years, the QLD government doesnt like that, so with the expiration of the EPC, RCI was forced to release that they were going to start a new drilling program to firm up the resource base on the fear that they would lose the license. Maybe this was a risk for Jindal, im not sure on that one.

On the brighter side, net cash flow is positive and cash on hand stands at 26 mill.