Swaja,Thanks for the bank of very pertinent questions. Happy to...

Swaja,

Thanks for the bank of very pertinent questions. Happy to ask.

You sort of lost me with "Based on the above we can then roughly evaluate how much they should farm out and what percentage
(936000 - Q2 + Q4 )/Q1 6"

I thought I was OK with english and maths however you have me struggling to comprehend the question. Can you give that one to me in simple english/maths?

Cikku, my thoughts are:

You have a board of individuals, perhaps each one with a different view on funding FP2.

One may say we have enough cash to go the 72% ourselves but leave no cash in the kitty. Another may say we need to farm out 10 - 22% to be free carried. A farm out may create an unresolvable argument as to what percentage they should give to bring FP2 to free carried status.

One or more may be stupid enough to want to cap raise whilst the SP is decimated as it is. (They did it for LP.) I would be livid as it would mean the board has no regard for the existing problem of the number of shares on issue. Hence, my earlier post that I will vote against reinstating their 15% non disclosure status.

The board may not be confident enough that FP2 will be what they want and therefore, the more they farm out, the more they preserve capital for other purposes if FP2 is not so productive. Conversley, they may feel that they can farm out a relatively small percentage to be free carried.

It must be born in mind that Bongo 1 is producing about 92BOE per day plus gas, thereby enhancing existing income. Upon reaching TD, B2 was announced to be "better than expected". (I think their expectations for B2 were for it to be at least twice as good as B1.) It is a little cloak and dagger not to indicate to SHs what B2 initial flow rate was. The questions are: Are they fraccing because it is disappointing or has it flowed well but fraccing will make it better? If it was disappointing, why did they announce it was better than expected? If it flowed well, why the need to frac?

Don't forget, CAZA announced B1 commenced flowing at 400BOE per day plus gas. Even with a gas lift operation they now admit it is only 92BOE plus gas. I think they wanted to avoid making a similar announcement with B2 only to have to admit it stabilized at a lesser flow rate.

Whatever happens, an investor in shares first golden rule should be - Look at the calibre of the board before you invest. Then look at the fundamentals of the coy. As shareholders, we must take what the board gives us. For mine, apart from the pain that imposed patience brings me, the board has delivered a suite of assets that should have the coy cash flow positive and either SD or FP2 could be absolute company makers.

As I have previously posted, with 35 mil shares, I have more chance of making a million on VIL than lotto or the casino.

I still think at .01c VIL is good buying. Upside potential outweighs downside. Just watch the sellers dry up if SD strikes it big. You ain't gonna get a 10 bagger out of RIO, you just might out of VIL. Mind you, at worst I'd settle for a 2 bagger. It's called risk/reward.

All MHO. Not investment advice. Do your own research.

Good luck all Villians.

Miki