Today I have reduced my holding. Because I believe there is...

Today I have reduced my holding. Because I believe there is going to be another capital raising. I don't like it, and I still hold a large parcel. However, I think that is why the SP has remained under pressure the last few days. I also think it is why Simon Ashton is suddenly on the offensive with his commentary.

At the end of the last quarter the company had around $7.0m of cash and a quartely cash burn rate of $7m while this drilling is progressing. It has done them no good to have this well re-drilled and I believe they will have to raise more capital to maintain their participation or else dilute their interest. If I am right this is very poor capital management to allow themeselves to be placed in a position of going back to the market time and again. That is why they have little credibility and why the SP fails to take off when there is good news.

I just hope I am wrong.

regards
DF