Ann: Key Petroleum Enters Australian Oil Hunt , page-36

It is a concern. The unknown is, as you rightly point out, what the money is being spent on.

We will have to wait til the 4th quarter cashflow & activities report due at the end of July to find out.

Given the knowledge that Brockham #4 has been offline I am presuming (hoping) that some of that cash burn has been on improvements to increase overall production rate.

Remember when the raising occurred about $1m was allocated towards working over Brockham, hopefully this spend on Brockham #2Y and Brockham #4 (and any other production wells in the Brockham field) were planned and accounted for in that raising.

Trouble as you point out is that KEY is now left with insufficient funds for it's forward plans meaning we are faced with either selling assets or a dilutive capital raising.