news break, page-155

Dmasive. How can you see the bleeding obvious, yet, so many others want to paint the worst case scenarios?

Frankly, I don't give a damn how much "outsiders" make in this project, as I think that there will be huge profits for all, especially those that have got in at these low prices.
And my view of S.I.s for this company is that they have been a great asset for all shareholders.

And I am particularly encouraged by how management seems to be much more interested in getting the best deal for the company and this last deal is a perfect example.

As you stated, this was the ann re the loan.
Short Term Financing Arrangements  
To fund well completion and additional testing and production work, the Company has secured a $2m debt facility 
from sophisticated investors.  Key terms of the facility are 10% interest rate, $2.4m repayable on or before 30 April 
2015 at any time and 66m unlisted options ($0.015, 3 year expiry). On the Company completing a successful debt or 
equity raising exceeding $5,000,000, all outstanding amounts drawn under this facility will be repaid as a priority or 
the lenders may convert their loan amounts on the same terms as the next completed equity raise.  
 
Now that's pretty significant for mine. Removing all the conspiracy theories, these are the simple facts, so let's take a "positive" view of this loan, just for balance. Readers can make up their own mind.

1. The interest rate is 10% and in this market that is definitely as good as you will get for an oil well in far off Guatamala.
2. If the loan is kept for the entire 12 months, the company pays the lenders $240,000 in interest, making the total cost $2,640,000.
3. The 66 million options are unlistedi.e. the cannot be sold on the market and do not dilute the existing listed options.
4. To derive the maximum benefit from these options, the lenders must exercise them @.015, which would return $1 million directly into the company's coffers.
5. Company would, therefore, have paid a maximum of $2,640,000, including interest, with the potential of receiving $1 million back from the lenders, who also get a cheap entry for their support(N.B. above today's S.P.!!!).
6.Therefore, the loan of $2,400.000 ends up costing just $1,640,000!!!
Win/win for lenders and company (and shareholders)!!

And it is a "debt facility" so may not even use all of it, making that scenario even more attractive to the company!!!

As I see it, that is an outstanding outcome for the company and contrary to what the conspirators think, most certainly an incentive for the company and all associated with it, to get the S.P. up as high as possible, as soon as possible, to entice the lenders to exercise those options, as soon as possible!!!.

Am expecting over the next couple of anns, a probable TH with results of the logs with a flow rate, followed by a significant upgrade of the Atzam project. Ultimately, culminating in that 3D seismic survey which will, together with the results of A4 and A5, provide a bankable proposition for future necessary funding. That should be a debt facility (NOT with S.I.s!!), or, if a CR, will be at a most attractive rate for existing shareholders to reward THEM for their patience, another win/win!!

Very exciting times ahead. Enjoy.