re quarterly actvities report, page-35

The $11mil is the part that hurts. The price is actually reasonable, but the amount raised creates further doubt. We know the next couple wells are meant to run at about $5mil a pop, so they basicall raised enough for 2wells.

Obviously they needed to raise enough for atleast 1well as we still need to drill a minimum of 1 commitment well in 2011 or we relinquish or lease.

Why did we need enough for 2wells? Do they not anticipate revenue from J50 anytime soon? Thats understandable and good risk management. But what about J52? Surely by the time we spud the next well and burn through half the cash we would be earning from somewhere even if its NWZ2.

It really smells.

And where the heck do we plan our next well? It obviously isnt J51 because that is a step out well and need J50 approved first.

And if we are so confident of a JV, then we dont even need to fund 100% of the future well costs. So $11mil seems extreme and highly dilutive for no reason.

Still no AIM listing, so another CR raising once J50 gets the go ahead?

To me it looks like we are rewarding Waterfords. They will sell into the AIM listing and make a packet. Hopefully those of us restricting to selling on ASX can benefit from higher trading price in UK, but often their are price mismatches.