Hi All,For those interested just posting my summary of today's...

Hi All,

For those interested just posting my summary of today's ASX and my thoughts on the amount of Capital that has been raised pre Mukuyu-2 & the planned 2D seismic.

IMO, the funds raised are well above the costs I would expect for Mukuyu-2 & the 2D seismic. Even though SM hasn't implied or mentioned it my thinking is that he maybe getting sufficient capital in place for an "immediate" and extensive production testing campaign - which is obviously the next critical step. And on success with one or a number of oil zones potentially put in place some small scale oil production facilities.

Slide 1 - ASX Key Points
1 - SM does not mention flow testing but this is the next critical step.
2 - "next phase of operations" - does not mention seismic - possibly a flow testing campaign?
3 - SM is not stepping back on the presence of light oil
4 - Well location yet to be finalized - surprising at this stage - waiting on seismic inversion or Rock Physics analysis - would be good if these were underway

Slide 2 - Notes on Amount of Capital raised
1 - Funds potentially materially above Mukuyu-2 & 2D seismic costs
2 - Funds being put in place for "immediate" and extensive production testing & on oil testing success to initiate oil production?
3 - Funds in place to shorten time frame for production testing
4 - Funds in place for immediate production testing if sampling fails, as in Mukuyu-1/ST1, due to tool / operations failure
5 - Funds could cover some small scale infrastructure to initiate oil production and fund a Certified Reserves funding model for oil production - thus delaying Farmout until gas / condensate development, allowing IVZ to better understand the Mukuyu Structure's potential & possibly just Farmout the gas / condensate rights and keep the oil??


GLTAH
Cheers
VOGC