I spent about 3 hours yesterday reading and back checking data...

I spent about 3 hours yesterday reading and back checking data in the annual report, the independent experts report...and the notice of annual general meeting.

A summary of a couple of things that I found.... both interesting and concerning

Hers the interesting stuff first...

1. If triangle acquires Maverick (this looks most likely given they have a website pending www.triangleenergy.com.au) then existing shareholders equity / ownership will fall to just 12.08%, the new triangle directors and AE’s will control 78% of the company.

2. Mavericks 30% conditional interests in loopgate (100% ownership of project is projected to be valued @ approx $16.43 million) will be worthless if maverick does not spend a further $470k on exploration before 19/12/09...but they don’t currently have the cash available and they are not currently actively pursuing options for exploration ... pretty tight deadline

3. The report has estimate that the new company will be cash flow positive by January 2010.Basied on the production revenues from Pase PSC

4. The share of revenue from Pase PSC is split between the contractor of Pase and the Indonesian government OIL 65% government 35% contractor and GAS 68% contractor 32% government.

5. The lease expires on 11/02/2011 and would presumable be re-tendered. TPI are preparing a ten year extension to the Pase PSC term. However it has been noted in the report that “there is a small but significant risk that the PSC will not be renewed on terms that are sufficiently attractive to TPI to justify the commitment.”

6. Valuation for TPI is based on getting well A-6 back on line in November producing a consistent flow until 11/02/2011. However A-6 has been shut in since 2005 due to incredibly high water production. If TPI get A-6 back on line it will be inevitable than any water coning that has subsided below the bottom of the well, will again rise up and produce high levels of water vs. gas production again. This water break in suggests that the majority of the gas has been produced.

7. It’s unlikely that TPI could exploit any exploration potential before the PSC expires due to long lead time in establishing projects in Indonesia. If they get the extension this could be a little super star in the making, with significant oil reserves identified as low risk recoverable reserves.

Ok so here’s the thing that really concerns me if all of this gets passed which seems to make sense from maverick perspective... all existing shares get consolidated on a 3:1 basis. So a consolidation on a 3:1 presumably does that mean our shares now worth 1.5 cents ...will be worth 4.5 cents?

That all sound reasonable....BUT Then the issue of millions of new shares to all other parties takes place at one cent?...seems a bit rich to me!?!

And on top of that we will only have a 12% share in the new company (The new triangle energy global ltd) which will have over a billion shares in issue... 1,018,300,000 to be exact...now that’s a lot of shares!

Everything else stacks up to me except the 3:1 consolidation.

I am keen to hear everyone thoughts on this...



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Resolution 6 - Consolidation of Share Capital
To propose, and if thought fit, to pass the following resolution as an ordinary resolution:
“That, subject to Resolutions 2 to 5 (inclusive) and 7 to 14 (inclusive) being passed and in accordance with section 254H of the Corporations Act, Listing Rule7.20 and 7.22.1 and the Company’s Constitution and for all other purposes, approval be and is hereby given to the consolidation of the Existing Shares and Existing Options of the Company on a 1 for 3 basis as detailed in the Explanatory Statement, with any fractional entitlements being rounded down to the nearest whole number.”

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