who can you believe

In preparation for the GM, I have been reading several announcements and information provided by KEY about this acquisition. I can now understand why their credibility is being continually questioned on this forum.

A perfect example of this involves two separate letters signed by our chairman, Dennis Wilkins:

July 27 - a letter was sent to shareholders recommending shareholders to vote in favour of the resolutions. In this letter under point 2 it states:

"Whilst the Company still remains financially secure with ~$2.0m cash in the bank as at 30 June 2011 and has revenue of ~$500,000 per quarter from its oil production in South East England, the Board has been conscious for some time that a transaction of some significant nature is required to revitalize the business and regenerate shareholder value".

Ok, that sounds promising,

Then on August 11, a letter was sent to the author of the "Save Key Petroleum". In this letter under the closing paragraph it states:

"As Chairman of this Company, I am able to advise you that the board is unanimously of the opinion that a failure to approve the Zeta transaction at the forthcoming General Meeting will place key in a tenuous position which will likely to impact adversely on all key shareholders."

So, in the space of two weeks we have gone from financially secure, to now being in a tenuous position if we do not vote in favour of this acquisition.

The question is what are we NOT being told by KEY management that is placing us in such a tenuous position. UK Maybe. Hopefully, all will be revealed at the GM.

I am sure our chairman understands why shareholders are so confused about the reasons KEY need to do a deal of this size. Are we financially secure, or are we in a tenuous position. Unfortunately, I have not seen anything from KEY to give me any comfort that this deal is in our best interest.

It has to be a NO vote for me.