thx guys,from the tone of the ASX release OGY will call the...

thx guys,
from the tone of the ASX release OGY will call the meeting pretty quickly.
so we should get much more info to support the board's decision to sell the bulk of PEL 115.

what seems to have occurred is that OGY has decided to concentrate on becoming an conventional oil producer.

But the problem was lack of cash.
we all knew that of course.
so where does the cash come from??

from the announcement it seems that SXY was planning on bringing forward drilling of Fury and the second well.
so OGY must find funding to cover their share - and we simply do not have those funds- and would be difficult to raise funds without a huge CR dilution.

a Cap Raising - well at current market thats pretty much impossible
farmout part of our interest? again not possible when we only have 20% in total.

a t/o from SXY would have been good, but if they don't make a move in time, then SXY as Operator would force OGY to relinquish equity in the J/V - we could lose it all.

so it seems that Fury has already flowed oil back in 2009, and it may be brought into production pretty quickly.

in addition, it seems like the shale O&G coys in C/B are no longer flavour of the month! have a llok at SP of SXY, DLS and BPT!

but it is the conventional oil & gas production which is attractive to investors and brokers so it seems. the market seems to place no value on unconventional resources.

I guess SXY could always come back with a T/O if these conventional wells start producing meaningful amounts of oil. And PEL 110 may well turn out to be highly prospective given good results from 3D, and it is evidently in the oil fairway.

also, in PEL115, we will still have the right to "back-in" to the permit if there is a conv discovery, and pay back costs - so a good option for OGY.

so given SXY has 80% of permits, once these new wells start producing cash flow, who can say that SXY will not want to "tidy-up" the ownership structure then?

am more comforatble now, particularly that no need for CR till end of 2014.

cheers