News: MEL Metgasco Says Co Enters Agreement With Byron Energy To Farm-In To South Marsh Island..., page-4

Hey Mark, I'll put together a proper post when I get some breathing time. In short this is a very, very exciting development and the company is adequately funded for not only drilling both wells, but completion and production (if successful).

The quarterly cashflow report doesn't paint the true picture, you'll need to refer to the written report for context. At the end of last quarter the company had the following cash and assets (excluding tenements):
- $6.4m in cash
- $2.2m in corporate bonds
- $6m in convertible notes receivable.
- $37.9m shares in BYE - worth approximately $11.75m
- 10m options in BYE - worth an additional $600k if exercised and sold at BYE current market price.

So in effect they have approximately $14.4m in cash equivalents and $12.35m in assets that could be liquidated.

$5.7m USD is approximately $7.75m AUD. So they would still have around $6.5m aud left, noting that any additional outflows would be to complete a well for production. Of those $6.5m there would be a couple of million still outstanding on the con note, but the working relationship seems to be healthy with BYE, so that should not be an issue. I understand that any costs would refer back to pro-rata once each of the drills reaches depth, so completion costs won't be too horrific.

I'm beyond excited with this. Two high COS wells in a very short timeframe. SM74 in particular looks like a game changer when you compare it to SM71 and SM73 and consider that MEL have a 30% stake.