Ann: Capital Raising Update , page-8

The raising was underwhelming. I can't figure how Ken Russell can say that they are happy with the take up rate, 60% is nothing to be pleased about.

My question is why was the raising done now?

The UK acquisition is still conditional, the KN#1 seismic is still being processed, we still have no clear dates about any further progress in Tanzania and Italy.

KEY could have done more to make this raising a success. I'm looking forward to seeing the ASX announcements about the directors holdings following this raising, it will be interesting to see what the take up rate was amongst the directors.

Now that my griping is out of the way, good news is that we have the cash for the work on the Lidsey oil field. Hopefully we'll get an announcement in coming days about finalisation of the UK acquisition and the seismic around KN#1.