exe vs ctp, page-8

I have also seen that figure rojames speaks of but can't quite put my finger on it. However if you go back to the investors presentation of Feb 2011 you will see the original deal was for 50 million bucks up front plus the option to acquire 19.6% of EXE @ 31.5c. This figure would be to do with FIRB rules I think :

http://www.firb.gov.au/content/obligations/fs_4.asp

"Takeovers and Acquisitions
The Corporations Act 2001 imposes restrictions on the acquisition of voting power in companies or managed investment schemes. An entity must not increase its (including the holdings of its associates) voting shareholding in a listed company or an unlisted company with more than 50 members:

from 20 per cent or below to more than 20 per cent; or
from a starting point that is above 20 per cent and below 90 per cent."

It takes an awful lot of capital to get a project like this up and running. Already we have gone through just over half the 50 mill put up by CNOOC. Look at SXY just to our south west...they seemed pretty advanced compared to EXE and had some income yet they just did a CR for 155 million to sure up their future development.......

I see in the last presentation that EXE still has 9.8 mill in cash so their burn has been very modest. This is pleasing because despite the fact CNOOC have been picking up the tab for field work so far EXE could have burnt a lot of cash on "administration" as we so often see with these type of penny stocks (those damn office photocopiers can be so unreliable and cost a fortune to maintain). This has not been the case with EXE. Directors own a very large percentage of the company so there is a great incentive for them to try to make this a multi billion dollar company...This would see them personally far better off than if they were to be pinching pennies out of shareholder pockets with endless CRs that achieve nothing....

So if by next year EXE can still hold the best part of 9 mill, and if they can bring in 17 mill from ops conversion in September...and if CNOOC provides them with a further 27 mill by taking up the 86.6 mill the EXE will have well over 50 mill in the bank by the time they have to start going halvsies with CNOOC...also don't forget that CNOOC will have to match EXE's bank roll so the project would have over 100 mill to continue on....and then there is a good chance of some early production from Katherine which will further boost the coffers.

Of course this is a best case scenario all going well...but if it comes off the the share register will still only be around 690 mill shares which would be good I think with that kind of cash backing and even more so if we can see some substantial drilling success this year.