placement of 2 billion shares at .001 cent

From the rights announcment this morning::::

"""On 16 November 2010, Kilgore Oil and Gas Limited (ASX: KOG) (Company) announced that it will be offering eligible shareholders the opportunity to acquire additional fully paid
ordinary shares in the capital of the Company (Shares) via a renounceable rights issue(Rights Issue) on the basis of four (4) Shares for every one (1) Share held at the record date of 8 December 2010.
Shares under the Rights Issue will be offered at 0.1 cents per Share. The maximum number of Shares which may be issued under the Rights Issue is approximately 2,094,400,024 to raise approximately $2.1 million."""

Is this some kind of joke??