Ann: Non-Renounceable Entitlement Offer, page-4

The entitlement issue could be looked at in two ways. It could be to cash up if the production testing is not commercially successful or on the other hand it could be that investors that can interpret the announcements or insiders that are confident that it will flow are able to get a large issue of shares.Having followed KEY for a long time there has been many shares trade at 0.01 for a long period of time and they are very illiquid now at that price. Hence a trade will eventuate, as the production testing will start, but if it goes into a trading halt and flows commercially it could have a good rise as its break even point is below the oil price currently, hence a potential positive cash flow. It would also lead to a rerating of EP437.What interests me most is whether Kane who talks about previous drilling both in the Perth Basin and in the Canning Basin as bypassing oil and gas plays.Is he right? We are about to find out