Ann: Trading Halt, page-61

Firstly props to @Desolutionary . You called it, I didn't listen. Appreciate that you are not rubbing it in! As @blueballs and @melburnian have said CR element is filled and retail will likely fill also.

Like everyone else I wish the raise was at a higher price but the it's not. It is worth remembering we were trading at 1.6 as recently as 23 October last year. Fresh capital is not going to fall for a raise at 2.5+ when 3 months prior shares were 1.6.

Existing TEG SH's held 50% of L7/EP437 which is a high risk/high reward position for a minnow. While it is a CR the effect is that existing TEG SH's have "farmed out" another 15% of their permits and received net cash of $4.6m.

TEG could have sold out of GAS and retained the current SH structure and they chose not to. Instead they have retained exposure to GAS, which is close to first production, and instead sold down another 15% of L7/EP437. From a risk management and diversification perspective this makes sense to do. The current 50% exposure to these permits would have either made or killed the company.

The "new look" TEG will have over $10m in the bank and be well funded to deal with drilling, delays and cost blowouts. IMO this puts TEG in a better/safer position than it was prior to the CR. TEG, and the board, still have my support.

Always happy to hear arguments both ways.



Shares breakdown

	Shares
1	TEG	1,376
2	CR	250
3	ENT	125
4	OPT	187
5		1938

Current TEG SH's retain 71% post CR/ENT/OPT. (assuming the new options are exercised)

Distribution of assets
	Current	TEG- Post	CR/Entitlement
L7/EP 437	50%	35%	15%
PGY	3	2	1
GAS	3.6	2.6	1
Cash	3	2	1
R/E/O		7.6	3.1

Only booking the first $3m of the PGY deal. (the other $12m is to conditional)

TEG loses 15% of L7/EP437 but gains $4.6m cash. (7.6-1-1-1= $4.6)