a penny for your thoughts, page-31

Hi bozzo,

I know Sun have been referring to one well, however, the oringinal terms of their farmout with Peak (since merged with Raisama) from the announcement on 24th August 2010 were:

"1. Peak has committed to contribute US$1.3 million from existing cash reserves toward Sun Resources? share of the costs of the first L20/50 well to earn a 7.5% working interest in L20/50.

2. Subject to Peak completing its initial public offering and being admitted to the ASX on or before 14 December 2010, Peak will contribute US$0.98 million toward Sun Resources? costs of a second well to earn an additional 7.5% working interest in L20/50.

3. Peak also has an option to contribute US$1.15 million toward Sun Resources? share of the costs of a third well to earn an additional 5% working interest in L20/50. Peak must exercise its election within 7 days of the completion of the second well."

I'm not 100% certain, but it reads to me as though Peak will farm-in to 2 wells, with an option of a third. Perhaps this changed when they merged with RAI, however I haven't seen any mention of this changing in any of their announcements.

Anyways, have emailed Sun asking them to clarify the situation.

Would have to disagree with you regarding the cap raising prior to drilling in Europe. 2nd drill costs to Sun would be $1-1.5 million, leaving more than $5 million for Europe which has estimated costs of $2.5 million.

Cap raising might be needed for something else, but wouldn't have thought it was needed for Europe.

Cheers,
turtle