Ann: Quarterly Report for quarter ended 31 March , page-8

re: Ann: Quarterly Report for quarter ended 3... I actually think there is less chance of a dilution now due to Lidsey drill being delayed and the sale of TZ (and expl spend commitments) will reduce upcoming cash demand.

Cash obtained from sale can be used to sort out the UK and do seismic in Italy prior to seeking JV drill in Italy.

May as well get rid of Suriname. It is like a gnat on the back.

But yes, I am not too impressed with the way things have been going and the way the cash has diminished. It does appear that lots of people have their fingers in the pie.

But KEY management haven't completely stuffed us yet and this decision is a sign they might be trying to avoid further dilution.

If they had tried to hold onto all three areas we would likely have seen heavy dilution in the coming year and a billion shares on issue. As things look now with potential TZ sale, management could still dig us out of this hole if they **choose** to.

KEY could more than double from here if things pan out similarly to:

1) TZ sale completion within 3 months for +$6m (I would love to know the ball park value they are after)
2) KEYO options issue to self flagellating shareholders.
3) UK drill completion and success with large flow rate.
4) Italy seismic revealing large prospective (and hopefully stacked) plays.
5) JV interest in Italy drills.
6) hopefully similar investor interest if CAV/ADX can be used as a rule (I suspect Verus).