Yes I also hope that minority shareholders aren't burnt here. I also think the Directors do have an obligation to advise shareholders of the potential significance to LIO of the Nief Utara discovery as I personally feel it has been underplayed to date. We have the CEO of the operator,Citic Resources(51% JVP)stating that it is a significant discovery(Citic being a Honk Kong listed company with a $A3billion dollar market cap).It's important to note from their announcement the thickness of the oil reservoir in both zones from the Schlumberger logs. And we have KUFPEC(30% JVP)in their release stating the following: 'Nief Utara A-1 Exploration well preliminary analyses indicate 60ft net gas, 70ft net oil column.Well on Pressure Build Up Test and JVPs await POP(Put on Production)approval.' www.kufpec.com/KUFPEC/en-US/News/20080526d.htm
Hopefully the market will price LIO shares at a more appropriate level before Directors issue more shares to fund exploration in PNG. No doubt we will get a release tomorrow on the settlement of the PPU purchase so let's hope it contains more detail of the transaction/plans.
LIO Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
