Ann: AuDAX Finalising Farmouts for Sicily Channel, page-9

re: Ann: AuDAX Finalising Farmouts for Sicily... idl51

I do not think you would get a better analyst on this site than ronstieb; he sure can read and has passed on a plethora of useful information to the readers of this post.

The additional Chorbane negotiations in today's ann were announced in the HALF-YEAR FINANCIAL REPORT in the following scentence:

"In October, DNO International ASA (a Norwegian independent oil company) executed a letter of intent to farm into the permit, fully funding the first US$5 million well cost to earn 50% equity. In addition, there are ongoing discussions with other interested companies".

It did not say that DNO had backed out so the later ASX release would appear to indicate that either DNO are not taking up their option to farm in or the negotiations are taking place to further dilute the AuDAX percentage in the permit; possibly the latter but shareholders are left guessing. The announcement should have clarified this situation imo.

The statement "finalising a number of farmouts in relation to its Tunisian offshore and onshore acreage" should relate to farmouts that have been announced e.g. DNO for Chorbane and PGS for Sambuca; instead, we get "AuDAX expects to announce further details on the terms of these agreements and its new partners within the next few days" - titilating - but not keeping the market informed.

AuDAX have been in the process of farming out Sambuca for the last year or so. The ongoing process should have been included in the HALF-YEAR REPORT.

Instead, they announced "Drilling is planned to commence between June and September 2010" which was a very negative statement and the share price could have tanked. Look at the SUR sp when they announced that drilling in Thailand was delayed until Q4).

Cash on hand As at 31 December was only $1.7M which, at the current rate of spending (plus the PGS expense), would mean a discounted capital raising is imminent even though funding is apparently available (on uncertain/unexplained terms) from Trafalgar in exchange for shares by some magical method that ensured Trafalgar were not in a position of having to make a takeover of ADX.

The second announcement yesterday countered the first announcement, to a point, and gave some market excitement for buyers (that do not read further than the positive side of the announcements) to maintain the price of the shares.

I would expect the market to soften fairly rapidly - but I am usually wrong so greatly appreciate the opinion of others such as the great reader ronstieb.

GO, NOT comical for holders that buy shares because of possibly misleading or manipulative information posted in the ASX releases.