key turning in a big way, page-12

paladin boy,

Who is paying for bulk of the drilling cost in the canning basin??....Not NSE or BRU....... but Mitsu and Cononco....


Drilling a significant number of shale wells is too intensive for any junior company, hense BRU and NSE signed with majors who also believe the basin can replicate success (in the case of Cononco read "their success") in similar US basins. Over in the NT another small Norwegian company just signed a joint venture with two junior companies for ~$200M in exploration. CTP is likely to follow if they can sort out their crap imo.


So like BRU, NSE, PFC, BKP and others KEY need to find a big brother for funding, there is no other option, they will not be raising cash for drilling as this is not possible (Cyrene 1 drilling on KEY's lease is also paid for by BRU). Re-rating will be any further success of NSE/BRU drilling, and corporate action with BRU, and if they can sign with a larger company to drill their lease south of NSE.


KEY will need cash to pay expenses and management issuing shares with little discretion is always a risk at the junior end.