Ann: Quarterly Cashflow Report - 31 March 2013 , page-7

re: Ann: Quarterly Cashflow Report - 31 March... Skychief

I have NO relationship of any type with KEY management.

I don't hold KEY, NSE or BRU at present but have held NSE & BRU in the past. I do hold REY at present.

The Canning Basin is hugely prospective and is attracting plenty of interest and investment from the big boys. But despite this the share price of ALL of the companies mentioned above has been smashed in the last 6 to 8 months. I took early losses on NSE & BRU and then bailed to save my capital. I am waiting to see a bottom before I buy into KEY.

Just because I don't hold a stock doesn't mean that I don't like the fundamentals. IMO KEY could be a bit of a dark horse. It holds acreage which is in the condensate & oil window of the Canning & is close to roads etc which will make it cheap to develop. Similarly the Perth Basin acreage is prospective for oil & gas and is adjacent to a pipeline. NWE has found both oil & gas in their tenement but testing is still being completed.

KEY management are being smart with the cash that they have by minimising overheads. At the same time they are assessing options for further acreage & farm ins etc.

The final point I will make is that since you already hold shares you need to ask yourself why you bought them in the first place. If the reasons are still valid then I struggle to see how the current price could be seen as a disaster. IMO the current price is an opportunity.