no capital raising in progress, page-2

I posted this about a month ago - but will do so again as I think that it is relevant once again to this thread.


From 26/2/10 half yearly report

"It is expected once this occurs (production start up at FP1) that the well will generate positive cash flows sufficient to cover all further costs and therefore leave a sufficient cash surplus for operating purposes for the period of 12 months from the date of signing these accounts.(26/2/2010) If the costs ultimately exceed the directors current expectation there is potential that the consolidated entity would be required to source additional funding from either debt and/or equity markets".

"The ability of the consolidated entity and company to continue as going concerns is dependent on the success of
the well and the ability of the company to source additional funds from debt and/or equity markets to meet:

1. any unplanned costs if the actual drilling costs of the first well in the Fausse Point Exploration Project exceed the directors expectation by more than existing cash resources;

2. future development costs and working capital requirements if the drilling program is successful."

These statements make it clear that finance should only be needed if costs are greater than anticipated or if FP1 has further success and requires further development.

To date there have been no unplanned drilling or development costs. In fact infrastructure costs have decreased from $400k to 380K(As per latest report).
Operational costs are anticipated to decrease due to permanant access road ("Importantly, this road construction removes the significant monthly hire cost of the temporary
access road decking that has been necessary for site access over the wetlands".) Finally, the promoter (Pass and GGP) have "elected to take up his rights to back into the development, which means he also contributes to all JV expenditures from here on."

With regard to the possiblilty of requiring finance to further success at FP1. This will not be known until VIL either discover more about their unknown lower zones potential or test the shallower zones. In which case the share price will be higher than it is now due to the postive SP movement gained from any further FP1 results.

So, if for either of the two events above occur, and finance is required;

From latest anouncement:

"We have had very encouraging interest in what we have discovered, the potential and our overall corporate strategy. This in turn has generated some other very prospective early cash flow generating development opportunities to review and secure if deemed appropriate".

and;

In addition, we have been presented with several interesting and flexible project financing
packages which the board is currently reviewing. These packages may deliver the potential to
accelerate our planned growth.

These statments are clear in outlining VIL's solution to obtaining finance if needed. It is also clear in stating that it is only for "accelerating planned growth". (presumably FP2)