announcement- elguido, page-2

Hi Austravel.Well,you cant say that KOG management hav'nt used their imagination in coming up with this funding arrangement.Odin must like the look of our offshore assets.On the plus side KOG get cashed up a bit and still retain 6.5 % of these offshore wells and all of their interests in the onshore wells,which in my discussions with management are looking much bigger than they had originally thought.With income of $2-300,000 pcm,it wont take them long to repay the second part of the advance,and it will give them enough money to drill some stepout wells which have a very high probability of success,equalling more production.Best of all it does not dilute SH equity.KOG remains tightly held.%12 gives ODN a good return on their money,a couple of points above convertable bonds I have seen other companies issue recently.I dont know a lot about ODN and will now do some research,but the best way to tell if KOG got a good deal is watch the ODN thread and see how the SH react.Personally I think management have done good by us and thought outside the old cap raising box.BTW the seller was before the announcement.Cheers