results on the horizon, page-39

Will be interesting to read that reply Omorrisey. Get the impression that LCY`s gambit is the threat to dilute HAW`s interest with further exploration spending (not development spending on which HAW may have veto) that HAW cannot live with. LCY are confident that they are entitled to do this under the terms of the agreement (we shall see) and they look to be trying to hold this over HAW as a big stick to get the balance for next to nothing.

If HAW have left themselves in this situation then it was a pretty crass deal with LCY in the first place but they may yet succeed in spite of themselves because of the sheer quality of the remaining asset and the fact that they have reserved that equal say in development for a potential partner/purchaser.

Only time will tell who played it right but it is high stakes for LCY - the sort of sums that HAW will likely settle for now will be peanuts as compared to losing 40% of the resource (and there is much more to come from the Eastern BIF and the DSO) for want of paying a fair price now.