resolution 5 - vote no

Resolution 5 – [shortened for clarity]
"The Company proposes to offer up to 200 million new Shares to professional and sophisticated investors at a price at least 80% of the average market price calculated over the last 5 days before the day on which the issue is made. "

This is plain stupid IMhO. This will certainly dilute the SP.

If they had been issued around about now then it would be an extra 25% shares [taking total shares to 1.05 BILLION] at about .046c [80% of current SP]


I'll bet our assets in the ground won't matter squat to the SP then.

Market Cap would have to rise 20% to just leave SP where it is now.

I can't understand why they would need the money. It is so little.

200mill shares by say .045 [about .057 x 80%] only = $9mill. yet according to the annual report they have got $16.5mill cash and another $17.5 mill to come from Oil Search.

That is $34mill. !!!! Why do they need a piddly $9mill extra at the expense of screwing us all for a long time to come?

Is this just turning in to a cash cow for the Directors?

A big campaign for a NO vote should be started up. Personally I will not vote in favour of Resolution 5 without further explanation.

Maybe I just don't understand or am missing something. Happy to listen so someone explain it to me.