acquires zeta petroleum, page-38

Are they serious.

How can they expect shareholders to accept a deal which appears to give all our assets away for 5.5m, and at the same time dilute every shareholder by a ratio of 3:1.

The first question you have to ask yourself, do we need a deal like this for KEY to succeed?

The answer is simple, NO, imo.

Even a novice investor can come up with that finding. There must be more to it than we are being told at this stage.

All along KEY have told us their growth strategy was to increase cashflow by purchasing oil & gas assets and develop them. So why come up with a deal that appears to destroy our company?

Agreeing to a reverse takeover by a company with debt, how does that translate into creating shareholder wealth for KEY shareholders?

Getting a new management team with fresh ideas and a clear strategy is going to be a plus, if they do get the numbers to get this across the line.

Fully explains why the directors would not touch the last capital raising. Why tell your shareholders this was a great opportunity, when you knew what was coming around the corner?

I was confident that this acquisition would be focussed on a UK company, but really, the level of destruction to KEY as a company is unbelievable with this deal imo.

If it is true that KEY management have been working on this deal for 12 months, what were they thinking when they ventured into a deal with CalEnergy instead of focussing on Lidsey.

The decision to vote NO is very simple, imo.

I agree with asteroider and others that the best way forward would be to replace the KEY board immediately. We then need to find a company like COE to front up with say 4 million and claim a stake in WSS. We could then drill Lidsey and wait for our other assets to progress.

Initially, I was hoping KEY would sell WSS and use the funds for Lidsey, but Tz now appears to be making good momentum. If Nyuni 2 is a success later this month, we must retain WSS imo.

If there is more to this deal than meets the eye, can the existing board please come forward and share it with your shareholders?

Cheers
R