Ann: BlockC1-202 Operations Update , page-2

Good update today. I like the production guidance, it certainly gives you an idea of where we could be in a couple of years.

8000 bopd + 100mmscf/ day which I think equates to about a further 16500 boepd. Nice.

A GM of around $20 / barrel for oil and $10 for gas and margin starts to look very healthy.

Nice to see that they are looking to the future too with the size of the pipelines.

I think the first phase (3 wells) will be paid for from existing cash (the previous placing) and the 2nd phase (end 2012) will either come from a placing following an exploration well at Accra (assuming we finally get all of the approvals for the farm-in!!), this also assumes that this is farmed out prior to drilling which I expect, or potentially a reserves based lending facility as the initial phase (the 2 development wells) will not only tie up some future production wells but also aim to move some 2C into 2P which will enable RIA to tap the debt market. I certainly hope they wlll do this.

There is a possibility of a cap raising prior to entering on AIM, but I'm not certain that its required.

The actual rig will cost about $80k / day, and for 4 months (likely to take between 3-4 months) then the cost is just short of $10m. Add on all the costs associated with the services providor and I reckon the 3 could be drilled for between $30-35m which is within the current cash reserves.