fortune up again, page-14

Crew,

If I was writing up a report for an investment firm and putting a recommendation in to my clients on MPO. These are the questions that need to be asked..

Don’t shot the messenger.. But try to answer some of them..

The points that Mr B. bring up are very real and should not be discounted, as they will determine where our investment will be in 12 months time.. if you do look through these questions you should start to see why the consolidation makes sense to management.

Thus to make it easier to raise more capital with out the feel of dilution. Slight of hand it might be termed. A very neat trick. Shuffle the deck and shift the cards around.. The joy’s of financial leverage.

As Mr B. points out

“By the end of next year we would have only developed South Africa Phase 1 and expanded the Mungi Fields. How much cash flow do you possibly believe these two assets will generate?”

“Looking at todays announcement MPO burns cash like crazy in the next quarter they estimate an expenditure of some $11million. if you divide $11m/$40m the outcome will be around 4 which equates to 4quarters which means they will be seeking further capital raising.”

Very fine points to ponder..

Most of the reading is pointing to a ROI towards the end of 2008.. it is a long road between now and then.. and by cracking some numbers on what maybe be pumped out of the ground it is still pointing to management having to come back to the market for more money mid next year..

Pretty much the case of "before the chicken can lay the golden egg it will have to be fed some more grain!!!!"