Ann: PEP11 Option Update, page-45

the company PEOCO LLC is set up to handle those funds that are exclusively for previous unpaid liabilities owed by the collective of SGC XST EME (and anyone else that may or may not be liable.. i cant keep up with the changes) for dempsey and alvares, covering things like previous leasing and well operational costs, it just happened they did not pay them on time imho so it made their balance sheet look pretty good if you missed the small print (which i didnt),, and as operator i dont believe SGC actually operates these fields but sub contracts the ops to sub contractors which i believe are also significant shareholders in SGC ( is it dero parker?).. it also will contain money owing for the operating costs of the uneconomic gas fields shared by xst and sgc where costs outweigh returns by a significant factor.

it does not contain any working capital that SGC can access for itself. it cant use the PEOCO LLC other than to pay liabilities they all owe as a group in the various regions it operates.. . so you will need to minus that from any calculations.. call it an unpaid overdue liabilities fund..

sgc would need easy 1.5 mill for their contribution to the upcoming alvares well in its own right, excluding other commitments.. imho they have not got that covered, (do the maths) yet have required the other partners to be completely capitalised for the alvares ops.. as an xst holder i am not impressed we had to dilute when sgc didnt (but the sgc directors would have made sure they were included in the XST cap raise i bet) .. you can make reasonable assumptions as to what SGC has planned.. obviously it isnt funded so you can draw your own conclusion.. the thing is time is creeping up.. and nothing has happened.. either alvares will be delayed again for another year or something has to give either way real soon..