Thai Divestment, page-34

You typically get the FPSO on a lease, effectively a financing plan, or hire purchase if you like.

The actual field development still requires a heap of money, for drilling the wells, in this case with horizontal completions, and for the flow lines etc. For all this you might go something like 50% debt, 50% equity.

Before all that we likely have quite an expensive appraisal program, likely in the order of $200mm ($40mm from CVN) imho, plus some exploration other than Roc (say $20 mm from CVN for one well plus some seismic). That will all need to be equity.

I am not a financier, just telling it from the armchair like I have seen it done with previous developments. DYOR.

Saltacan talks of Thailand making CVN, going way way back to a 2 cent sp. Well I'd have to kind of accept that, but correct it. The CAPITAL RAISINGS for Thailand, together with the $30mm proceeds from THE SALE OF half our Thai assets had semi-made CVN - set up Phoenix and got it's sp back to 8 cents. Operationally Thailand has been a cash sink, a black hole for three CRs.

Getting rid of Thailand ( for a fair price) is getting rid of risk, and it is realising and bringing forward cash flow that might not actually happen. Furthermore a market mostly interested in the Australian permits will not fully price the Thai assets with their chequered past, sovereign risk and disconnect from the Australian narrative.

We need FOCUS and we need CASH NOW (well 2015), not unbankable Thai cash flow after the Apache JV has explored our permits.

Keep the Thai assets and we are likely to have Adrian giving away sub 20 shares to some greedy "institutions and sophisticated investors", in order to keep pace with Apache.

And Sojourner, no I never participated in the last capital raising, it appeared to me like feeding a worthless black hole as you suggest.

EL