Ann: Trading Halt, page-23

12 August 2014
JayCee007
"Dear friends in WOF-Land! I just wanted to keep you in the loop on a few thing... some of you may or may not be interested in. Today I received a super
prompt reply to a cash-flow related query that I had from the June 30 Cash flow report. My query realted primarily to the cash resources available in
upcoming periods. The companies reply re-assured me of the current cash position (status), and that the cash position should remain buoyant into the
forseeable future. I invite any other holders to liase with the company as well - as their response was timely, reassuring and professional.)"

RichardNixon
"JC, Did they specificaly exclude the possibility of a placement to sophisticated investors or other form of cap raise this year?"

JayCee007
"There was no mention of a cr dude!"

On further query from gottalovevmt, you stated that "It is refreshing to have a company that shoots straight in this area" Oh dear!

Hmmm. "timely, reassuring and professional". And an outright lie, of course! This should be a valuable lesson to all in not trusting any management blindly. No matter how "reputable". Of course no one will ever tell you "Yes. We are looking to issue equity as soon as possible to pay ourselves!" You should have stuck with your own initial analysis which had guided you into the right direction. The quarterly burn rate was plain to see. But seems you let management "ease your worries". This did not brew overnight, and must have been in the pipeline for a while!

A "significant capital raising" could well be translated to issuing close to/more than 100 Million shares. While not a tantalising prospect, I could take that for the right price. Below 5 cents, and that is a kick in the nuts! Greater than 150 Million shares would be terrible (from my point of view at least).

Which also leads me to the conclusion that WOF are going to be conducting further seismic on their own. I was hoping the seismic part would be free carried by a farm-in partner. A 300 square kilometres 3D Seismic and Interpration would cost approximately 3 Million Dollars.

The farmout negotiations have been long and drawn out, as they all are. So no surprises there. I believe we are some way off sinking a well in Mongolia!

On Wolf going it alone? That is a no-no for me. They should learn from the mistakes of Petro-Matad. Plus any drilling campaign is likely to be at least four wells, roughly costing 16 million dollars plus testing. If Wolf were to raise that kind of amount, I'd be stumped! That would be the dilution of all dilutions! And please note that the company has very recently stated that farmout discussions are ongoing. You can't go it alone, and still farm out. So which is it?

Anyway, ALL THE BEST!