(This working capital position enabled Moby to discharge the standby funding facility put in place in May following cost overruns in both the Cornea-3 and Braveheart-1 wells, and ensures the Company has sufficient funds on hand to continue with its exploration activities, regardless of the outcome of the Artemis well.)
The acquisition of Rankin Trend, the holder of the interests in WA-360-P and WA-409-P, proved to be a valuable one, as that company subsequently farmed out to MEO and then, subsequently, agreed to sell a 5% interest in the WA-360-P permit to MEO for US$7 million. The transaction will put the Company in the most positive working capital position it has enjoyed, exceeding even that achieved when listing on ASX in July 2004. This working capital position enabled Moby to discharge the standby funding facility put in place in May following cost overruns in both the Cornea-3 and Braveheart-1 wells, and ensures the Company has sufficient funds on hand to continue with its exploration activities, regardless of the outcome of the Artemis well. Despite having agreed to sell the 5% interest in the permit, Shareholders still retain considerable upside exposure from the retention of a 10% interest in the permit in the event of success at Artemis
MOG Price at posting:
5.4¢ Sentiment: None Disclosure: Not Held
