big dump, is this the end of the spp?, page-39

Okay, let me put it this way... the money will be raised.

No shares will be issued or allotted under the Offer unless resolutions 3 to 6 (both inclusive) are passed at the adjourned Annual General meeting and Moby raises sufficient additional funding to provide it with not less than a net $18,900,000 to enable it to meet its farmin commitments under each of the Braveheart Farmin Agreement and the Moby Farmin Agreement.

Both Waterglobe and Tejveer1 are correct that the RI money will be returned to participants if the funding is not raised. Albers will raise the shortfall very easily if he has to. Albers has numerous companies with the potetnial to finance these drilling projects. It is no problem for him and his board. Believe me when I say they are not working up a sweat over this.

Exoil is the operator of both the Braveheart and Cornea field. Exoil has recently gone through a RI in which an agreement was signed with another one of Albers affiliated companies. The agreement was that Great Missenden Holdings would underwrite the issue to the tune of about $3 million and provide a loan facility in the event that not enough funds were raised through the RI. This would provide them with the finance necessary to fund their equity interest in the 2 high impact wells. Exoil also went on to sell a total 13% stake in Cornea to two other Albers affiliated companies on a 1:1 promote basis. Octanex (OXX) picked up an 8% stake for 8% of the intial expected cost of the well. The intial cost for the well was $24.1 million, so Octanex paid $1.928 million for their share.

What I am indicating is the ease at which Albers can finance his projects. People have hinted at Octanex comming in and taking up the shortfall with their $30 million in cash. This I would believe is highly unlikely given that a well committment is due from OMV/ENI and they are to receive their results on their soon to be drill ready Winchester prospect which will be in year 6 and due for a well. OXX have big decisions ahead and thus need their cash. I would not rule it out though as Albers may choose to increase OXX exposure to Artemis, given OXX hold ~5% of CUE.

Taking up the RI you are de-risked, in the event MOG does not get the funding it requires. You can be damn sure they will.

The 14th of Dec is the expected spud date of Cornea-3 and closing date for the RI. Allottment of RI shares will probably be around 17th/18th if funding is fully achieved by then. One should expect farminee news for Artemis within the following week (before Christmas).