lets get this right, page-49

Just had a quick read of the latest announcement with the resolutions to be voted on.

How do the holders feel about the number and terms of the sub-underwriting options?

S&M get 30,927,675 5c July 2010 options for underwriting 14,272,460 undersubscribed shares.

Seems S&M will put in equity to ensure that their loans are repaid but need a big swag of in the money options to make even that deal worthwhile.

Poor old Euroz caught in the middle having lined up a bunch of their sophisticated investors @7c...

Directors subscribing to shares to a lesser value than the loans that they are hoping to have repaid...

And now the "true believers" are telling the world that it will all be Ok because OEL will bet the whole company on a "sure thing" in Italy - and it will pay off big and fix everything including the BHPB "deal"...

As a non holder but potential investor I could not think of a worse time to jump onboard - and the same logic applies to the rights holders.

I fear the rights issue is doomed to fail - and unfortunately it is the only thing that will save the company (ref the statements by OEL that the shareholder loans were the only option as no one would lend to them).

This company was bet on the oil price staying over $120/bbl - this is clear when the price paid for Galoc and the financing arrangements are considered. That bet was lost and successive doubling-up-to-catch-up has all but sunk OEL. I give them 3 months.

p1000