record month for tui, page-11

Ah (sigh) ....dargie. ... with all the money they have pouring in from Tui.

Let me explain. And may I say I am not GUESSING.

First: Kupe - they already have the funds for that. First their share of development costs up to October 07 was around $50m - met from NZOG's general sources of funding. Second the remaining development costs are being funded through a $125 million debt facility with Westpac bank.
So no need for Tui money going in that direction.

Second: Pike River - Again no real need. They have offered to provide extra "arms length" funding to PRC early in 2008 "if needed". If I remeber correctly (and I can check this) a figure of about $20m extra "if needed" was mentioned. That might come from Tui cash flow but probably another loan arrangement is also a possibilty. Nothing has been precisely said on that as far as I know.

What else do we know? The new CEO, David Salisbury, has stated "We are in a robust financial position with good cash flows and we can fund a reasonably significant exploration programme - around $20 - 25 million in the comming year"
Another quote which I have quoted before from the same CEO address " However it is unlikely that our growth targets will be met solely through the drill bit. We are looking at all opportunities: exploration, asset purchase, and corporate acquisiton. We do have specific acquisition ideas, but for obvious reasons, we can't talk about those at this point."
That was said on 26 October 2007.
Now read those comments carefully again. Those are pretty emphatic comments on direction and purpose from the CEO. He ain't going to mess around and he has the cash flow now to do it. NZOG is not going to take over AWE but what small exploration companies in Australia might look worthwhile to snare or absorb. Just a thought.
I bet we hear something further on those lines in the next few months.

How did I do dargie ? Did I manage to convince you?