Making this the last time I respond to smart, I believe he has...

Making this the last time I respond to smart, I believe he has his own agenda, or issues.

"Just because they say something doesn't mean it's guaranteed to happen. I'd have thought RRS investors of all people would realise that by now. (4 wells per year in Texas, spudding of Cotton Valley in August, drilling in Georgia by December, Puntland mobilisation in July...and that was just the lies for 2010!)."

True.

"Ultimately it doesn't look like enough money at all. $5.6m for Georgia, and if we make a strike it's going to cost more to put into production, which obviously is going to drain the cash balance."

Can you please show us your exact calculations for Georgia. I get:
40% of $(7+6)m = $5.2m (RMP's top end estimates)
40% of $(6+7)m = $4.4m (RMP's bottom end estimates)


"Out of the $11m or $12m raised, that leaves RMP with only $5.4-$6.4m to pay for Puntland, and that's discounting the costs of flow testing and putting a well i nto production in Georgia if we made a strike."

I calculate a $7.6m to $5.8m excess from the raising (assumes between $11-12m raised) which can be allocated to Punty. Add in the $2.8 from July'10 raising and we have between $8.6-10.4m left for Puntland first drill. That infers they have enough to pay 30% of a total drill cost of between $28.6m and $34.6m. As AOI are targeting second tier contractors, who knows, maybe the total cost may be under $25m for first drill as initially budgeted for last summer.


"$5.4-$6.4m is not enough to pay for 30% of a Puntland dril and directors salaries until July (if indeed the July date is to be met)."

See workings above, and please provide your assumptions for Georgia budget.


I don't understand why this is such a problem to recognise. If I told you all that I had enough cash in the bank to buy myself 10 Ferrari's and a couple of multi-million dollar houses, would you believe me even if my bank balance showed I couldn't buy those things? Hope not.

Look at the bank balance, not at what the company is saying, and work out for yourself if they can actually afford it. They can't (IMO)."

This sounds a bit condescending of you sir. Maybe if you provided your detailed workings, and wrote in a less emotional and antagonistic manner. We will possibly see RMP's bank balance in their quarterly, until then I can see exactly how their funds might match their 3 drill commitments, sorry if you unable to, but you need not post the same stuff over and over again - doesn't become more logical/grounded with repetition.