Strange that we went from having work commitment expenditure of $20m for the 2011 financial year as announced in the 2010 annual report to only having $1.3m for the 2012 financial year.
What happened to our commitment of $20m that was largely never spent? Looking at the figures in the 2010 report, the announcements regarding divesting assets (and therefore commitments) and the 2011 report we seem to be missing something.
As at 30/6/10 we had expenditure commitments of $20m for the 2010/11 financial year. We spent $6m in exploration costs and we offloaded 75% of our interest in Nyuni/Kiliwani so we can be free carried for the Nyuni #2 well. What happened to the rest of our commitments?
There is no way 20% of the cost of Nyuni #2 amounted to $15.1m. The 2010 report states that $9.3m commitment was for drilling two wells in the Nyuni block and that one well was unlikely to be drilled in the 2010/11 financial year.
So why is there no reference to KEY's share of the cost of drilling the 2nd well in 2011/12 in the 2011 report?
Why is there no reference to KEY's share of expenditure commitments for West Songo Songo?
Clearly our board is not being up front and honest with shareholders, but then most of us have presumed that to be the case already.
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