Duringany capital raising there will always be fallout when...

Duringany capital raising there will always be fallout when shares are discounted toraise funds – plus this recent round came at an expensive time for us PI’s withthe Christmas period looming so I’m not surprised to witness an amount ofsettlement as the share price shake-up finds it’s level.

Always frustrating when the market cap doesn’t reflect a company’snet asset worth – but this is more a reflection of the markets in general andwhere the short term money is being made – rather than anything wrong with ourfundamentals.

Although nailing a specific timeline with regard to share availability beingovertaken by demand – I’d imagine that we will see price rises as flow testresults come in from Galilee which will likely be 'sold into' as that’s the waythe short term markets work.

As a long term holder although painful to witness the short term shenanigans – Ibelieve that the better the news at Galilee once the flow test results areknown and the closer to production at Mahalo and Mahalo North we get – thetipping point of being self funded draws ever closer.

Oncewe are producing and the potential suitors who have sat on the side-lineshoping that we would never reach that point so they could pick us off for a‘song’ realise that they made the wrong call – then it’s decision time for them.

Either we become a producer in our own right for the long term muscling ourway in and pinching some of their market share – or they have no option otherthan to buy us out.

There’sa big difference between a company who is seen as having the possibility ofreaching production and one which is producing and self funded.

The first is reliant on new money cash burn – the second is self funded and ifthe excess income can be used to fast track production from new fields – thendiversification of the production base paves the way for a big take out priceor a decent yield for those of us who have waited patiently for what seems likean eternity – plus the market cap at that time should be based on P/E.

As an long term investor I see this as being one to 'tuck away’ only taking a look everynow and again when the markets give the company a ‘prod’ or news is forthcoming- believing that my patience and confidence in our management will be amplyrewarded as the end game approaches knowing that the time already passed is many multiplesof the time still to go until that point is reached.

So I’m just sitting back ignoring the short term noise knowing that first gasin 2021 is really not that far away.

Abelated Happy New Year all.