I'm sure everyone is aware of potential financing issues around...

I'm sure everyone is aware of potential financing issues around the next stage of development and appraisal / exploration drilling but I seem to be a bit more objective with my viewpoint.

As was stated again yesterday, they will be releasing an updated CPR which will identify what the current 2C resources stand at based on evaluation of the P3-ST1, P3-ST-2 and P4 wells and whether any of the data supports the movement of any of this into 2P resources.

This in itself opens up other avenues rather than just equity raisings as you profess to. RIA will be looking to further the growth of 2P reserves so that they can use these in financing arrangements with banks. Even within the whole debt arena, there are multiple options, straight debt with immediate repayments, straight debt with deferred repayments, debt with potential equity conversions, bond issues (unlikely in my opinion), but my point is opening up these avenues are what RIA are going about at this point in time.

Whilst the P3 well has taken a long time, the gas flow rates are excellent and certainly support the production profile they are talking about. This will be a gas production well, and I suspect P4 will target the main oil reservoirs whilst testing others and these will be a great base going forward.

I suspect RIA will go forward with an RBL debt facility and an equity raising at the same time (potentially to the same investor) in order to raise the cash for development. What worrid me most about funding was the statement recently that the next phase will be around appraisal / exploration and not the completion of development drilling. I would think they should develop Gazelle first and then move on to other prospects. A potential 3-4 well programme with no development wells would be the wrong move and far too risky in this environment. We need that cashflow to underpin future appraisal / exploration programmes.

Look at Afren as any example, they developed the Okoro field in Nigeria quite quickly and then moved on to appraisal of Ebok (partly using the cash raised from ops) and now have both in production and are using very significant cash generation to develop their other assets and look for further acquisitions. This is the model that I hope RIA follow.