animex announcement, page-27

One more month to the next quarterly report to see how much cash remains. Any bets on whether there will be enough left to drill the HZ well? I have a doubt due to the delay.


Asteroider, good call. After reading this comment from yourself I've wondered over that myself.

At the end of the last quarter KEY had cash of $4.4m and according to the capital raising presentation the estimated cost of drilling of Lidsey #2Hz was $3.5m so that would suggest we have sufficient cash.

However, KEY's cash burn in the December quarter was fairly high and I presume this has continued into the March quarter. Also, KEY has worked over the Brockham field. Presumably the work done was that work that had been proposed in the capital raising document which the presentation (slide 6) estimates as costing $1m.

http://www.keypetroleum.com.au/reports/20090719CapitalRaisingPresentationFinalAsPrinted.pdf

Asteroider, if the above is correct then you are right, we won't have enough cash to drill Lidsey #2Hz this quarter unless KEY do a placement or borrow against future cashflow.

I too will be watching for the 3rd quarter cashflow & activities report with interest.