?Based on current info this could well be in admin after they...

?Based on current info this could well be in admin after they spend the current cash on the UK well. Surely those options are completely dead in the water?


Hey asteroider,

Well, I am not sure about that. We do know that Key are talking to AEX which could result in the sale of our 50% interest in WSS which will most likely be a cash sale IMO.

It is very unlikely that they will spend $4M in the UK, unless they know additional funds were going to come from somewhere else to keep their working capital at around $3m. A cap raising so soon after the Nov issue is very unlikely imo.

On a separate matter, I was having a look at our ROI with our UK investment from back in 2009, link below

http://www.keypetroleum.com.au/reports/20090719CapitalRaisingPresentationFinalAsPrinted.pdf

Refer below for extract:.

POTENTIAL RETURN ON INVESTMENT (AT US$60 / BBL);
Lidsey-343,000 bblsrecoverable 25.75
Brockham?485,000 bblsrecoverable (est) 36.38
Less Opexat $20/bbl 20.70
Less cost to purchase and drill 8.50
Total ROI $32.93

For me the point that stands out is that this is all based on US$60 BBL. With Oil now at well above US$100, just do the math and you will see that if we are successful at Lidsey we will end up with a nice revenue stream

Oh, and by the way it is based on ?Brent Oil prices?

Cheers
R