The current well has probably the most potential of any well...

The current well has probably the most potential of any well they have drilled.However it comes at a time
when the company is almost out of cash.The delays in starting drilling are probably not the fault
of PGS but the shortage of cash results in part from the dreadful royalty deal entered into with
Macquarie in August 2014 when the price of oil was close to $US100 a barrel .

"The Directors of Planet Gas Limited (‘the Company’) are pleased to announce that the Company has entered into an agreement with Macquarie Americas Corporation (a Macquarie Bank Limited subsidiary) for the purchase of a 3.0% Overriding Royalty Interest ('ORRI') over established oil and gas production assets in Kansas, Pennsylvania and New York State which total approximately 500,000 barrels of oil equivalent per annum. The Company's net ORRI pre-tax revenues are estimated to be US$650,000 per annum on production assets with an estimated 3% per annum decline curve.

Purchase consideration is US$4.58 million, with US$1.38 million funded from the Company's existing cash reserves and US$3.2 million by a drawdown from a 5 year US$15.0 million debt facility provided by Macquarie Bank Limited which will be repaid US$150,000 per annum plus a final payment of US$2.6 million. "