simple review as at 31/12/071) Debt about 176 Million AUD can...

simple review as at 31/12/07

1) Debt about 176 Million AUD can draw down another 11 million
2) Cash 27 million
3) Next Qtr production assuming similar oil price and costs forgeting development should nett around 30 Million AUD generous
4) unpaid liability 41 million

4) Development outlined qtrly 75 million

simple maths

Cash 27+ max know borrow ( ie another 11) + nett cash of 30
equals 68 million .

Thus is Development is 75 million they have no choice but to

a) Borrow more money from willing lender
b) Sell stake in oilfield for agreed amount.

Now I'm not and brilliant investor but in this climate getting more from your bank when you have well publisized production issues and outstanding credit problem will be next to impossible.

Option two in this market will be tough .. look at MFS did they get market value for stella no, so as I said previously too risky for me. 6 months ago they probably could have sold future production for fair value but today I don't like their chnaces.