Ann: Valuation and Listing Rule 7.1A.4(b) and 3.10.5A Information, page-41

"I take the view that the drillers always have to sell shares, some or all, just to cover actual expenses, no matter how positive they feel about what they are drilling."

If that is the case it's pretty rough on the investors that showed confidence in the company and took placements at higher levels. From a capital management perspective you are always better trying to maintain a higher share price IMO. I'd be quite annoyed if I was a sophisticated investor and I saw my equity eroded away because some drill contractor need to pay his crew.

In the company's announcement of 1 Feb 2018 they said that the $8.3 million capital raising was heavily oversubscribed at 34 cents per share. A sensible capital management approach IMO would have been to accept oversubscriptions and pay out the $500,000 to the drillers. From my reading the amount arose from an agreement dating from 2014 so could have been paid out in cash (could be wrong). Esh