bloomberg part 2, page-3

Our mkt's only focuses on the Cash on hand, so the 'free carry' component gets overlooked quite often.

The 600m will lower their Enterprise value which is mktcap + buggeral debt minus cash.

Not many mid cap players out there with a low EV-high cash on hand.

So yeah farmout 20% to PRE or another partner & then get the topdrive bit spinning at K#2 in Q3.

The photo on yesterday's preso is the Olinda Star semi-sub. See link below.

U can read its spec's on QGOG's website.

QGOG also own 3 FPSO's, so those could come handy if available at the time for PRE_KAR_??? JV's EPT at K#2.

http://www.qgogconstellation.com/static/enu/offshore-rigs.asp

So safe to say that the nxt trigger (prior to banking the chq for US$600mil by Sept-Oct) will b this 20% farmout & subsequent spudding at K#2).

At K#2, as they r drilling on the crest (updip frm K#1), I'd expect the same Eocene reservoir to show up at shallower depths.

So once the 13" casing is set at 1900-2000m, things should get interesting as they drill into the 600m gross column & drill on towards the Cretaceous objective above the Oil water Contact.

Porosity/perm at K#1 should hopefully extend upwards towards K#2, so should b a fairly low risk (high CoS, ie) well. Will b interesting to see the flowrates on the prod test (post logging so fingers crossed).

The testing will b>derisk the Kangaroo resource/ prospect & the JV will bank the 2C resource into 1P/2P category.

One can do a rough calc for KAR's net 88 mmbbls contingent resource.

Multiply 88 by 50-60% CoS & US$5-10/boe to get a risked value & then divide by shares on issue for A$/sh.

So plenty of time b4 the nxt 12mil volume of shares frenzy happens.