tctc,From KEY's Entitlement Offer Update on Dec 1, after...

tctc,

From KEY's Entitlement Offer Update on Dec 1, after announcing the $2.5m raised.

"The remaining shortfall will be issued at Directors discretion and they reserve the right to seek to place some or all of it with existing shareholders and new investors to ensure the Company has the required funds to drill the Lidsey #2z development well in England. Funds over and above this amount will be used for working capital".

IMO, I would be very surprised if the Directors do not take the opportunity to place some of the shortfall within the company management team.

As you rightly pointed out, If you look at the rights issue last year when some directors did participate, the ?Directors change notices? were all done at the same time. Based on this, I do not think that Ken has actually participated at this stage. Maybe he did think that there would be a significant shortfall, and that they would have an opportunity to place some of those within the company. Now that would be a vote of confidence.

If that does not happen, the change of directors notice yesterday makes a mockery of KEY's statement earlier on that they intend to participate, subject to financial commitments. Ken would be spending half his day on the phone to shareholders trying to explain their actions.

Interestingly the $2.5m raised this time is pretty close to the $2.7 raised last year prior to the shortfall allocation process.

I would prefer to reserve my judgement until all shares have been placed, and all notices received, before making any statements one way or the other.

Cheers
R