the key changes

6 months ago KEY was an internationally diverse oil & gas exploration company.

We had minimal cash, minimal production, poor or non-performing assets spread across the globe and in 4.5 years we had poor form with the drill bit.

Today we are focused predominantly on the Canning Basin with a side show in the north Perth Basin.

Forget a reverse takeover, KEY has now been shown by this latest quarterly report to have been the vehicle for CM to do a backdoor listing of EGO's Canning Basin assets and a source of new funds to progress those assets via the sale of KEY's now non-core assets.

In hindsight it was probably a good move, with the dilution of EGO there was little chance for EGO's Canning Basin assets to drive the share price. On the other hand, spin the assets into a struggling company, do a small placement to introduce new investors onto the register to help it get noticed by a new group of shareholders, hive off that company's existing assets for a bit more cash and Bob's your uncle.

Now just to sit back and watch the announcements over the coming days/weeks/months to see what cash CM can get for our non-core assets. Once the divestments are complete it will probably be time for another capital raising and then open for business with seismic in EP448, drilling EP437, free carried drilling of EP438 followed by re-testing and/or workover of Stokes Bay #1, Point Torment #1 & West Kora #1.