key entitlement offer & uk acquisition?, page-12

Kalmsg,

From what I've seen over the last 2 weeks it's more like buying $100 notes for about $99. I'm a sizeable holder (pretty long term) and am still undecided on the rights issue though I have the money set aside.

I can't say I've been really impressed with the offer. I also agree a deal sweetener would have been a good move. This is a VERY thinly traded share. From what I've seen in SPPs from other company the drop in SP was a given and on such a lightly traded share I'm not surprised to see the Sp drop to the level of the SPP price.

The discount needed to be bigger or the numer of shares offered, smaller or something like additional options or great news should have been in the wings. An additional 50% of shares resulted in a 1/3 drop in the share price. You'd have to agree that that is exactly what should have happened. And now we'll be waiting until completion of the UK oil field upgrades for the sort of good news that's likely to improve the SP and that's close to a year away IF they get the funds from the raising to do the works.

If you think I'm off base with this take a look at the share price. The market has spoken.

Illiquid.