this is what is driving the sp rise, page-6

Macrae12

From the KBO Sept 05 Quarterly report:

- Cash outflow for the Sept 05 Quarter was less than $0.3m

- Cash in bank and on call deposits at end of Sept 05 Quarter was $1.6m

- Estimated cash outflow for the Dec 05 Quarter was abt $0.15m

As you prob already know KBO, receive a small cash flow from producing oil wells and infrastructure in the Canning Basin. Existing management appear reasonably frugal.

I would think that existing cash reserves are more than sufficient to carry out the planned further investigations of the coal bed methane assets in France which the company expects will lead to significant increases in Gas-in-Place (GiP) estimates. I would also think that the recent arrival of Golden Prospects Plc as a significant shareholder of KBO lends credance to these company expectations.

Obviously there would need to be a capital raising and probable borrowings to develop the gas resource to production. If so, I dont see a problem for the KBO sp at all ... on the contrary it would be an endorsement imo.

Todays trading was interesting ... did you make anything of it?

Cheers
Poyndexter