ep 437 - north perth basin , page-60

Roznov, the main problem is money is being spent on EP437 & Lidsey #2z.

This will leave little to no money for #Nyuni #2 meaning a whole new capital raising in the next three months unless our exposure to Tanzania is watered down or sold altogether.

As I've voiced my opinions previously, selling Tanzanian assets completely would be a travesty.

Assuming we fully retain our Tz assets then we'd be looking at needing $4.5m to $5m for our share of Nyuni #2 going on previous announcements by KEY.

If Dunnart #1 and Dibbler #1 are dusters then all the new shares will be under water within days/weeks of being purchased.

Lidsey #2z is nothing special, it will help short term cashflow but it ain't that great as it will just speed up the depletion of the Lidsey oil field.

So basically there is the real risk that KEY will be doing another raising at potentially lower levels than this current raising in the very short term.

Conversely if the EP437 wells are good and the share price rises 50% plus from current levels then I expect that KEY would do a 15% placement to their preferred investors to help fund Nyuni #2.