back of the envelope valuation, page-33

Borrowing base was US$80 million according to the 2007 annual report with US$50 mill for the 1st lein (dranw to 44 at the time) and US$30 for the 2nd.

The 2nd lein is expensive, yes, but from my point of view the extra interest cost from a $4 million dividend (rather than paying this debt down) would be a mere $200k. Nothing to write home about. Particularly if Schwing #2 hits, company can easily afford to both pay down debt and pay a dividend.

From my conversation with Mr Towner I can almost guarantee they will no be waiting for this debt to be repaid before paying a dividend.

MJS