energy and capital, page-18

I love Kockatea...I love Kockatea

Always said CR early 2013. If it was me, I would do it between the end of Kockatea and testing of HCSS, while good news over a month or 2. I would do it in the next week or two, and have it done well before final testing, so that the SP is free to track positive news and let the buyers feel good.

Could wait until after testing, with the idea of raising funds for quick tie-in if successful, on going 3D seismic for resource estimate, seismic in other EP to the northeast. But hard to predict this outcome, from here.

Could go for Sophs only for CR... if current shareholders are whingey about stumping up funds. But then current shareholders will whinge about the discount to sophs. You can't win...

Est. $5-6m around about 5c, bring the cash up towards $8m. Its not a good look to let the cash drop below $2m, apart from the realities of coping with negative surprises. So not too long. Last CR July 2012 had cash-in-bank of $2.6m., SPP for $5m, so can't do that again till a year is up. Sophs or rights issue is available, with the 10% approval recently from the last meeting, it is almost a done deal.

I would do it just to remove it as the only near-term negative to investment.