posiedon size, page-6

Bob & Sandy,
Following on from my last post on the subject of a CR I did find a reference from an article by Ross Kelly of Dow Jones Newswires on 1 Oct to a possible need for Kar to raise more capital. An extract follows:-

"The joint venture made a promising gas discovery with the first well, Poseidon-1 but disappointed with the second, Kontiki-1.

The third well in the campaign, Poseidon-2, will be an appraisal well to evaluate the significance of the initial Poseidon discovery.

A spokesman for Karoon said drilling on Poseidon-2 is expected to occur within the next 10 days.

A 3D seismic survey of the greater Poseidon area will start in early October, Karoon said in a statement.

Two more exploration wells, Lion-1 and Kronos-1, will follow Poseidon-2.

If the company decides to drill another four wells, it may have to come back to investors for capital after raising A$173 million from a placement and share purchase plan.

A decision to drill more wells could depend on the results of Poseidon-2, Lion-1 and Kronos-1, as exploration success could justify drilling more appraisal wells"

ANZ