So what's the point of raising a paltry $1m? The only logical...

So what's the point of raising a paltry $1m? The only logical conclusion is to pay the wages. In the next 6 to 12 months we need at least $9m or so for drilling. $2.25m for the North Perth Basin, $3.5m for Lidsey #2Hz and $3m or $4m for Nyuni #2

Surandy70,

I am convinced the sale of our assets in Tz is the answer to your question, which is why they are doing such a small placement right now.

I originally thought that we would see a $5-6m cap raising to cover the drilling in OZ & UK this year, however after seeing the announcement today, my opinion is now that the sale of our assets in Tz will definitely be funding our drilling costs this year.

IMO, there is no need to raise excess capital right now, they basically only need enough to cover budgeted expenditure until the sale proceeds come through, which I am tipping to be c $6-8m.

I realise this view is not shared by everyone on this thread, however to me it makes perfect sense to exit an asset like TZ if ongoing expenditure (i.e.: drilling Nyuni #2) will not result in income in the short to
medium term due to uncertainties with the development timeframe.

For a young company like KEY in todays market, inward cashflow is essential, hence the reason to focus on UK and now OZ which has near-term production potential.

I do fully agree like most posters that the Options attached to this placement is a bit rich, I am not sure why they thought they had to sweeten the deal with options for such a small placement.

I will also be voting NO.

Cheers
R