re: moby float analysis *warning* Ian, you demonstrate some...

re: moby float analysis *warning* Ian, you demonstrate some interesting points. However, I agree with you that $3.8m is cheap for the well and it is most likely to be in excess of this. You notice in the prospectus that Moby pay the first 3.75 and then BSOC pay from 3.75 to 5.75 whereby all parties (Including EBR pay pro rata after that). This capping aleviates a lot of risk for Moby and allows the float to succeed. There is a quid-por-quo in the promote that Bass Strait has assigned its 10% free carry from the second well, Gilbert-1, that Lakes Oil are paying for to Moby i.e. Bass Strait keeps no interest in Gilbert-1 and assigns Moby its 10%.

I still see Moby as the best entry to the Moby feature, which looks as the lowest risk gas prospect in years - the other option is Eagle Bay as Bass Strait is not listed.

The Chairmans letter explains quite clearly that Moby is essentially a 'spin-off' from Bass Strait and Albers companies are partially underwriting the float to $4.5m. I see the whole thing as simply a 'staged' capital raising, with priority entitlements and offers to Bass Strait and Eagle Bay shareholders. If it is such an attractive offer to Bass Strait as you belive then there won't be many shares available, but somehow I doubt they will all take up their subscriptions and hence there will be shares available to the rest of us.