capital raising

Assuming the Tanzania divestment doesn't occur then I predict that we will see a capital raising sometime between now and 22/10/10.

I am presuming that it will be a 15% placement and again we'll be asked to ratify the placement at the AGM which will be held late November.

Cash at bank as per the presentation on 7/9/10 indicated that we have sufficient funds for the EP437 drilling and administrative costs with spare change left over.

A raising in the time frame I've indicated will be for "working capital" and will allow time for the ratification to be included as a resolution at the AGM due in late November 2010.

My expectation is that Lidsey #2Hz will be pushed back to February 2011 or later (perhaps we'll have unseasonally cold weather again over in the UK).

If divestment of any of the Tanzanian assets do not occur then I'd expect another raising in early 2011 however this would need to be a rights issue or a placement combined with a rights issue to enable sufficient funds to be raised for drilling Lidsey #2Hz and Nyuni #2.

Presumably we'd be looking at a raising of around $7.5m to $8m for drilling and a little bit extra (that blasted working capital again).

I'm guessing a one for one rights issue, or placement followed by three for four rights issue.

Keep in mind the above is pure speculation based upon available information from previous announcements, presentations, etc.