drilling delays

Hurricane Ike has delayed the availability of the Lightning Rig by about two months, meaning SAL1 will spud by August/September at the earliest.

I have tried contacting the company in relation to the recent funding campaign, though have received no reply. Frankly, it's not that big of a concern if they cannot raise the equity immediately, as it means existing shareholders will not suffer undue dilution before SAL1 proves the resource at LC.

I've put it to the company that if they wish to raise funds from the existing shareholders, it is important to include free attaching options, preferably on a 1:1 ratio with the issued equity. Recent placements, whether pro-rata or capped (SPP), have usually seen the SP slide back to and below the offer price, stymieing their ambitions. I suggest that anyone else who supports attached options for the upcoming public offer should contact the company and state their opinion.

I can state that there is no way I would personally gamble the additional funds required for any placement if the added incentive of free options was not in place. The company is by far the most attractive exposure to the junior geothermal sector, but this ain't no charity, and to further back a sliding SP would be, in my opinion, madness.

Cheers