announcement due to west africa assets, page-12

Butcherano,

I hope you are correct. I don't have any info on this supposed last minute sale - as I've said before, I don't know anyone on the inside of this company, just various outsiders.

That said, I'm a bit like Kaoto in that I'm not sure there is much of a future for this company once they sell West Africa - although it's probably a better future than the one I was painting in my earlier post.

Let's be generous and assume that they get $10m for their African assets (even though you have indicated it will probably be somethng less than that amount). Do you know if they are completely up to date with payments in West Africa - they don't appear to be up to date anywhere else so lets assume they still have money owing in Africa - say $1m.

How much do they owe in Colombia? $5m??? More??? Again I don't know but lets assume it's $5m. They probably have about $1m in the bank so all of this would leave them out of Africa with about $5m, about 100 bopd income, a duster at Mugello??? and a chance to drill LP2 for a few million.

Their current admin and lifestyle costs will eat their cash up in about 6 months so they need to make some very meaningful changes to how they operate. They are no longer a world wide player but just a small J/V partner in Colombia. I think they should make management and expenditure changes to reflect this.

Being conservative, if they drill LP2 and get their estimated 200 bopd BKP share, then they are a company of almost 400m shares, with cash flow of say $7m per year and no cash. This is not even enough to pay for the fancy offices in Perth let alone spending wisely to grow the company. Could they fund further exploration with this or would they be going to the market to raise millions of dollars for exploration at share prices between 2 and 3 cents?

If you are right then my gloomy forecast above will be wrong and this company will survive - but at what cost and are they really worth 3c per share without Africa?

Cheers

Badfish