Ann: Update on Wailawi Oil and Gas Project: Director Appointment, page-16

Yes and No. The vendor (CEP) will only be getting the number of shares which equates to the purchase price, with that value to be attained by board, in conjunction with the independent expert report. Whether the acquisition price is $12.5m, $8m or $2m etc. The kicker for the Vendor (CEP) is that based on the market cap of the company those shares represent X % of the listed entity, (this means the lower the market cap prior to satisfying chapter 1 & 2, of which is the requirement for shares to be a minimum of 2c), means the vendor will own a greater percentage of the listed entity, NOT more shares. This is were the valuation of control plays a critical part of any valuation of the project being vended, as this a reverse takeover (back door listing) there is no cash paid to existing shareholder as is normal in takeovers for change of control, this means there needs to be upside existing shareholders not just "a pay day" for the vendor.

Whist I appreciate shareholders frustration, of which I am one. Those selling now do/will not affect the purchase price of the acquisition but are inadvertently assisting the vendor to control a greater percentage of the company. Another way to say the same thing, the lower the share price the greater dilution to existing shareholders.

It is the success of the future prospects of the projected being vended in to EOR which will determine the share price (growth) in the months/years to come. Valuing that chance of success now is what the share market is all about. We, as shareholders need to believe those making the decisions (the board) are the ones that are capable of working in the best interests of shareholder, large and small. Get it right, the share price increases in price and all shareholders will be happy. Get it wrong, or take too long and shareholders become disgruntled, which in time will lead to managements ability being questioned, irrespective of the number of shares are held.

Excuse this next rant. I strongly believe, companies at this stage of their life cycle should only have management (including directors) who have skin the game, just like the rest of us, not just those prepared to accept the dollars in "reward" for effort. Success OF the company, should "easily" eclipse any, high paid salary or consultancy fees etc ...

D: Own Plenty

Cheers

Clever1