2014 Half Yearly Review

Folks,

This is my opinion and what I have observed from announcements etc ...

What became clearer to me out of the Mid 2014 Report was that the company had transacted a sale of assets at a 17% premium to book value....

Value in the accounts of assets sold at 30/6/2014 = US$9,910K
Net Cash received from sale of assets = US$11,600K

Therefore

US$11,600 (cash received) less US$9,910 (book value) = US$1,690K (net gain)
US$1,690K / $9,910K = 17%

This is good ! ...

When you then analyse the balance sheet to factor in the above gains ... the balance sheet would then adjust as follows :

US$36,724K (Net assets) + US$1,690K (Net Gain) = US$38,414K / 231,200mil shares = US 16.6 cents per share / .94 (exchange rate) = AUD 17.5 cents net tangible asset value per share

This compares with the current share price of AUD 14 cents per share ... a 20% discount on the stock price value per share ...

The other important factor is that the assets do no include the value of Adeline Sugar Factory Well # 4 or consider any other possible asset like English Bayou, Hummer Prospect, Gazelle Prospect, Ship Shoal or any likely asset emerging from the July 2014 sale transactions. (other than the effect of sale on existing assets) ...

In considering the above facts... and looking into the future ...

We have not valued anything into the accounts for Adeline Sugar Factory well #4 other than the cost of prosecuting same.
We have not valued anything into the accounts for English Bayou (if it proves successful)
We have not valued anything into the accounts for Hummer Prospect (if it proves successful)
We have not valued anything into the accounts for Gazelle Prospect, Ship Shoal or any likely asset emerging from the 14th July 2014 sale transactions (if they prove successful)

The pattern that is emerging is that we only value known quantities / facts .... This is good !

I look forward to hearing tomorrow's telecon review ...

Cheers

PeterRG