Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-16

I think it makes sense. The market knows that for the next stage of development, ie the 3 or 4 Selva wells, the company will either spend all its cash or do a cap raise, a good time for a fund to come in. Even with good cash flows and cash balance, we are years away from any return to shareholders as the company wishes to develop Selva, which is good.

The real game changer will be when some or all of those wells are paid for, come online and start producing cash, or the company sells a share of, or all of Teodorico. The first is a couple of years away, the second could happen anytime.

What will management do with that type of cash when either or both of those things happen? All signs point to conservative management and perhaps a return to shareholders, but the market does not know what management will do and they are untested on that front.

So all in all, I can see reasons why large investors or funds would be cautious and put the decision off for at least a year or two.