Could CO2 be back on the table,Here are 3 paragraphs from the...

Could CO2 be back on the table,Here are 3 paragraphs from the latest Rancher Energy financial update Filed Feb 18:

We need
substantial additional funding or to enter into another type of strategic
transaction to be able to repay our short term debt and to continue
operations. Our other
goals are to enhance production from our existing wells, amend our two CO2 supply
agreements and initiate development activities in our fields.

In
October 2007 we raised approximately $12.2 million in short-term debt financing
to enhance production and provide cash reserves. While we had intended to raise
long-term debt in 2007 to further our waterflood and CO2 EOR plans,
weakness in the capital market conditions contributed to our change in strategy
to raise short-term financing. The raising of future funding is
dependent on many factors, some of which are outside our control and are not
assured. One major factor is the level of and projected trends in oil prices,
which we cannot protect against by using hedging at this time. Our short term debt
was scheduled to mature on October 31, 2008. On October 22, 2008, we
and the Lender entered into an amendment to the credit agreement to extend the
maturity for six months until April 30, 2009.

On August
7, 2008, we retained Growth Capital Partners, L.P. as the Company’s financial
advisor to consider financing and other strategic alternatives, including the
possible sale of the Company. We have been unsuccessful in completing
a strategic transaction. Our ability to survive will be dependent
upon completing a strategic transaction; however, there is no assurance that any
transaction will be completed.