Capital Raising, page-9

Nothing has changed in 12months time with their cash situation since June'13 when Mgmnt were still putting a +ve spin over the same debt caveats & that is what's come back to bite them, 12 months on.

They had $11.8m cash in the bank in June'13.

End of March'14 they had $4.775m cash in the bank, with another $13-14mil from 3 PJ sales rev expected in June Qtr, b4 costs/admin etc.

CR may simply buy them some more time. Question is how much to raise ($20mil-30-50mil !!), and at what price & how long b4 the wheels come off again.

12 months trouble-free sales projection @ 34TJ/d will still generate $52m in revenue in FY2015 & pay off some debt to Nomura & deliver a somewhat lower bonus for NXS Directors.

More importantly would anyone even trust these Directors to deliver ? NBT has done more then these guys have in 6 weeks.

Alternately why didn't they hire an Insto to conduct the Crux sale process ?

Why didn't they have the foresight to raise capital last year to drill LT#5 when they lodged the plans to drill it in 2012 ?

http://www.environment.gov.au/cgi-bin/epbc/epbc_ap.pl?name=current_referral_detail&proposal_id=6498

Why didn't they proactively pursue the cheaper option of opening the sliding sleeve for the 400sands at 2474m depth to flow extra gas to generate revenue beyond 31Dec2018 with a new GSA instead of quarantining that additional '400' reservoir gas which was already perforated over a 22m interval back in 2008.

I just fail to understand the business rationale.

Meanwhile, Origin annc'd last Sept that they will b buying 432 PJ from ESSO-BHP project via Longford for their east coast mkt & have also acquired 40% of Karoon's share in Browse, so why wouldn't the NXS board engage with them or do we let McN+ to do that next ?

The good old 'No talk no shop' clause will prevent NXS from actively pursuing other buyers & a break fee of $3mil payable to SGH, if they walk away. So the noose just keeps gets tighter.

Wonder if SGH's talent scouts target the 5 Tcf stranded gasfield at Evans Shoals next, surely SGH would have done their DD on struggling minnows out there & on the mainland.

Simply staying in bed with Shell wont win them the trust of their shareholders or the market again, they seem to have followed AED's path, who remain in admin since 2011.