Good morning AllPutting some 'meat on the bones' of my previous...

Good morning All

Putting some 'meat on the bones' of my previous post.

STO are biding their time - they are a commercial animal in a prime position to strike when they feel that COI is in the weakest position - having run out of viable options other than to accept a STO low-ball offer.

Our management know this - they have loads of industry experience and it's up to them to 'turn the tables' in our favour. We either have faith in our management team to 'turn the tables' or we don't that's the size of it IMO.

STO will be hoping that COI's available funding depletes leaving COI in a position whereby another capital raise is required or an equally unfavourable funding deal - that's STO's game plan I'm sure - thus STO being in no rush to do anything with regard to making their move.

However - should a 'third-party of substance' buy/farm into Mahalo North with a view to fast-tracking Mahalo North to production having upped reserves - this leaves STO in a difficult position. Negotiating at that time with COI who's 'in bed' with a 'third-party' with the combined desire and means to fast-track Mahalo North to production - becomes a different 'ball-game'.

No low-ball offer will tempt COI and the farm-in partner if a clear financed way to profitable production is planned and realistically achievable. Add into the mix that the gas that will be produced from Mahalo North is not just coming from Mahalo North but also from the adjoining gas fairway in the Mahalo main Block that extends into Mahalo North .

So where does that leave us COI shareholders?

As soon as STO get a 'sniff' that there's a deal on the table with a farm-in partner at Mahalo North - then it's decision time for them with the tables having turned in COI's favour.

As a longstanding shareholder - I'd be astonished if this isn't the route being cultivated by our management team at this time - but time will tell.

Good luck All...