Pipiman,Roc has put $30 million into the Balai JV - the JV has...

Pipiman,

Roc has put $30 million into the Balai JV - the JV has then borrowed around another $150-180 I think to undertake exploration.

The borrowed money is non-recourse - that is Roc don't have to repay the borrowed funds so there is no further downside for Roc.

Once the exploration funds are spent and reserves are proven Roc will then have to fund another contribution to the JV for development - obviously this will depend on results so if there is oil there we spend and take the upside (to date 100 metres of oil whatever that is worth) if not we've blown $30 million.

In the short term there is no downside for Roc which is why I like the financing structure - for once its the banks and not the shareholders taking the risks on exploration.

IMHO