capital raising, page-15

From annual.
"The Group has expenditure commitments relating to work programme obligations of their assets of $20,045,000 which potentially could fall due in the twelve months to 30 June, 2011. $9,300,000 of these commitments relate to the drilling of two wells in the Tanzanian Nyuni block where the Kiliwani North gas discovery has been made and plans for development of that gas field are progressing. The Group believes that at this stage it is likely that only one of these two wells will be drilled before 30 June 2011."

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With a 1:1 rights at 4c and attaching 7c options we might have enough if WA is successful and free attaching 7c options expire and can be exercised in --> May 2011 <--.

2nd chance at a successful options exercise would be a successful UK drill that kicks production to 500bopd before May 2011.

Would need T.E. to remain as an investor and hold his share from the market.

Failing that and with no divestment we would be looking at a huge dilution to a group of sophs.

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Will be interesting to see if the company offers something along the lines of my proposal or just goes straight to the easy option of a soph dilution.
After a few years of this, I am 99.99999736% sure they wont go with my idea.
They certainly risk bankruptcy if they play it wrong and we are sailing close to the wind with this WA play which doesn't look too hot to me. Perhaps would have been better to stick to the UK redrill plan unless recent results with waxy build-up have made them think it wont deliver to initial expectations.