What a shame ALL ORDS moderated. Again.OK so I finally got right...

What a shame ALL ORDS moderated. Again.

OK so I finally got right into the prospectus and had a look at cash expenditure.

Under 3.3 'Use of Funds', Key find that the entire Tanzanian program will cost to them:

Year 1: 5.98M Year2: 1.71M Total: 7.69M

Given that the first hole took twice as long, and assuming the next hole is without delays (vertical, standard drilling configuration and maintenance already performed on mud pump engines and power generator), that means costs are now 11.535 Million. Key have 12 million in bank, and they have already paid for some of the drilling, so the costs will not be 12-11.535 leaving Key with half a mill. Key may have already paid up to half the costs of the program. Does anyone know?

Also, they believe Italy onshore Borsano will cost 2.985M to drill. So they should have enough money. And that does sound right, because it usually only costs like 3 million to drill an onshore well. Which makes me wonder why the hell the first hole in Tanzania cost the consotium like 15 million?! Maybe flying in the crews from Europe, mobilizing the drilling rig using barges and helicopters, and also the fact that it was drilled directionally. And maybe the owners of the Rig Maurel & Prom were aware that it is the only rig operating on the whole East Coast of Africa so they knew they could sting the consortium with the fees?

Management are sitting on massive losses. Ted, Ken, Terence and Company all got their shares for 12 cents. I bet they weren't counting on an SP this low in February 2008!