follow up volume, page-80

The fine print does make it interesting...

If 10.4m has been spent to date then 32.7m remains to be spent on Galoc II. This would require 16.8m on top of the 15.9m sitting in the Standard Bank accounts.

If they have approx 21m left undrawn in the Standard facility, then that suggests they have been required to leave around 4m (a 10% contingency?)in the Standard Bank account.

If Galoc II development goes to budget, there will be 4m cash sitting in the Standard account (I am guessing it is over to NDO as to whether they elect to draw the full facility or not). With the development complete this should then be available to other purposes.

They have 12.8m cash that is not sitting in the Standard Bank account.
There may be up to 4m cash to come back from the SB a/c if the project goes to budget.
I estimate we have around 7m operating cashflow in Q2, Q3, and Q4 (and that is skewed heavily to Q2 with two lifts).

Now, it is true all manner of things could happen to make a mess of this - a cost blow out, a Tindalo style disaster, a collapse in the price of oil, etc - but at present the numbers seem to cover both projects with a bit of small change left over at the end. By the time Baragatan spuds there will be a lot more certainty over these things.

Personally I would be happy enough for them to go it alone on SC63 - I think they can afford the risk and we're certainly overdue for a crack at a decent reward...