sale of 25% interest in bowland prospect, page-28

@webzone10

post capital raising debt becomes way more manageable. markup of cuad/bowland makes refi @ favourable rates with a traditional bank lender much more likely.

we now effectively have a free option on bowland with the carry. 6 wells will be enough to either establish certification for this resource or establish it is not economic.

on the opco - a withdrawal from general construction is good news. it's a very risky business given the complex contracts involved. smaller scale niche sub contracting for gov projects and drilling services are much less capital intensive.

look - the fact is we now have a clear run at getting reserve cert for bowland through to the end of 2014. If and when that happens and provided its as huge as GIIP/TRR we've hit the big time - whether or not we realise it as a gain via cuadrilla/direct.int markup or a cash sale. i agree the opco now becomes the focus but lets see if the so-called cost cutting has actually reaped any rewards in FY results. we can take them to pieces and strip out management discretionary items/one-offs to get a picture of whether its a viable biz or not.