Ann: Trading Halt, page-21

ghoti - thanks for posting the link - if the 'street talk' is correct - my immediate reaction:

Paying off debt is good and unburdens COI of the Santos shackles other than their JV position in the main Mahalo Block - which of course can be increased at the pro-rata rate COI paid APLNG.

This leaves COI in a better negotiating position should Santos want to increase it's percentage in all the Mahalo Blocks to 50% which has to be exercised by the year end.

It's always better to be able to negotiate without having one hand tied behind your back - ie. with no debt owed to the party with whom you are negotiating.

With the debt gone - this clears the way for either a massive capital injection into COI from Santos by the end of this year as we move forward in all the Mahalo Blocks on a 50/50 basis - or - COI is free to farm out to a third party who will do the same - or - COI can be bought out in it's entirety

Has our management forced Santos's hand? I presume that loads of alternative avenues are being discussed should Santos not exercise their option.

AngryBear's comment - 'Santos' - might have hit the nail on the head. Who's to say that Santos won't stump up the cash required in exchange for a percentage of the company at 17.5 cents a share during this capital raising?

If was in Santos's position and I wanted to buy all/some of COI - that's what I would do. After all - why wait until later this year when they enter into negotiations with COI to raise their percentage in the main Mahalo Block and in the other Mahalo Blocks to 50% which will cost them more.

Then again - it's only 'street talk' at the moment.

I feel end game is approaching.