good news, page-9

This is a great deal for PGS , in the context of what they had before it ie they had:
- 537 M = $8M mkt cap @ 0.015c
- 30-50% (with the larger greater potential South @ 30%)
- No cash
- $10.5M farmin by SXY = seismic + 3 x drilling
- 50% CSG permits in NSW near areas that major players have plugged out & they can't keep throwing money at it, with assured success - a political hostile environment)

Now
- 537 M = $8M mkt cap @ 0.015c
- 20% across the board (ie only 10% less in Southern)
- $5M in cash (no matter the result of drilling in PEL 514) to raise that @ 0.015 = 300M+ shares issued 62% of co.-
- (still) $10.5M farmin by SXY = seismic + 3 x drilling
If they hit oil
- free carry of $45M (ie $9M) expenditure by SXY
- $7.5M - net well head oil bonus
- $5.0M - 8M barrel bonus
- $5.0M - additional 4M barrel bonus
- still have 20% of the action

I believe those complaining, are hurting from higher levels (fair enough) or have sold over the last few months. PEL 514 is a valuable asset but the bulk of the area had passed onto SXY in 2011 via original farmin = this deal de-risks PGS as a high leverage oil/gas play, with cash in the bank & the high probability of near term cash flow - those that don't like it keep selling under 2c > buyers will be well positioned for any success in drilling that SXY will undertake shortly & from the terms SXY must have liked what they saw in seismic data to date....GLTA