Hi jackreacher, thanks for your queries. Your sentence...

Hi jackreacher,
thanks for your queries. Your sentence construction and syntax provide clear indication of your identity!

Digging a little deeper, readers will note that MEC Resources is a Pooled Development Fund (PDF). This enables the Company to invest in other entities that are targeting large energy or mineral resources, but correspondingly also restricts the amount of capital it can invest in any one entity.

Historically, MEC has focussed its investment into Advent Energy, an unlisted but public O&G exploration company that operates the PEP11, EP386 and RL1 titles around Australia. Advent Energy is a separate entity, with its own board of directors and many different shareholders to those holding shares in MEC Resources. Whilst MEC and Advent have historically been very closely aligned, the PDF registration does not allow MEC to invest more than 30% of its shareholder funds (without exemptions granted) in any one particular entity.

Drilling in PEP11 will require further significant funding. Thus, to prepare Advent to allow significant funding to take advantage of the exploration opportunities in front of it, greater independence from MEC Resources is required. You will have noticed that Advent has added two new highly qualified, experienced and independent directors (Greg Channon and Diana Hoff) to its board during the year to assist in its forward momentum.

In addition, the PDF status provides for a smaller corporate tax rate and tax free dividends. MEC has opportunities to maximise the benefits of its PDF status for its shareholders, and this may include consideration of new investments (hence the word "fund" in the registration title).

Whilst the Company has very strong beliefs in Advent Energy and its assets, it recognises that past company structures have limited Advent's future potential. We are working very closely with Advent Energy to ensure that future success for that company, and consequently MEC's investment, is given the best opportunity.

The current Share Purchase Plan will continue to support this concept and provide much needed funds to allow MEC to effectively operate as a PDF to the benefit of all of its shareholders. We look forward to your ongoing positive contribution to the Company.