The other way to read this gassed is that the company is...

The other way to read this gassed is that the company is relatively comfortable that the agreements it is entering into are such that there is no need for them to extend the life of the AKKOA in order to potentially attract more capital (note - I am not saying that having an extra $50m in the bucket wouldn't be handy ... what I am saying is that given the company is tying up agreements for installation of gas lines and farm outs the requirement for this amount of money to trigger substantial cash flow from operations is probably not especially critical)

This would be supported by Cottee's comments on page 2 of the announcement made 13th May that 'As can be deduced from the above, in the last 12 months the company's exploration has very successfully confirmed both oil and gas from each new well, placing it on the cusp of major cashflow once the surface infrastructure is installed. Unfortunately for shareholders, investor sentiment appears to reflect the short term spending requirement on surface infrastructure rather than the exploration successes and the positive outlook for oil and gas sales that should follow.'

So the thought process would be this: as long as costs can be kept under control, farmouts can be tied up to progress further drilling and agreements can be struck to fund infrastructure the company is not in a tearing hurry to expose the company to further dilution. The message from investors recently would have been loud and clear on this front when the SPP failed to raise even 50% of what they were seeking. Aside from all this ... what's stopping the company allowing the options to lapse as contracted and then issuing more options in fresh round?

I also am of the view that the company is doing the right thing by not 'honouring' the incentives to senior management. I think it sends a very bad message to the market if they were to change the goal posts on the options in order to take care of their pals ... the senior management are well paid and the options are part of a shareprice based incentive scheme. There will just be another round of options offered this financial year to the team.

I feel for the option holders however oppies are always a high risk / high reward play. Too much risk for this investor.