valuation, page-21

"A little example....There would've been no need to dilute our 35% interest in a substantial asset such as Taranaki if OXX has the backing of other large holders with deep pokets."

The move to sell partial interest in the matuku drill is about controlling exposure to risk.

it's all good and well holding 35% if they hit oil. but where are you going to get the funds to drill a second well? these "deep pockets" you talk about are not going to just hand over cash.. they will be issued shares, so you get 50 million more shares added to the register. dilution in another form..

And if they don't hit oil? you have 35% of a permit with no more free carrys.. and have to issue 150 million shares at a much lower rate to participate in any further drills.

Right now we have got 12.5 million back in exchange for 12.5% of a wildcat drill. and now exposure to 2 drills free carried on the permit.


You don't want 800 million shares on q register..