Management hasn't been able to JV the niobrara on terms to get a...

Management hasn't been able to JV the niobrara on terms to get a free carry on the drilling of a well so that says the industry doesn't place much value on this acreage. It is a high risk proposition and not one that we should be taking on at this stage.

Davo's right in that the only thing we should be working on is waterflooding Ash Creek. We should workover 2 or 3 wells that are better placed structurally in the field and get some cash flow going. Workovers probably cost around $150K each so they would add value if they did them right. Unitisation was supposed to happen within 6 months, how long has it been now with no word?

Appraisal of the niobrara, development at Hereford and any new high risk high reward jv should be on hold at least until Grieve cashflow starts flowing. These are high risk and marginal at best under current situations and I don?t see what the urgency is in getting these done at the expense of a massive dilution. When we get close to production at Grieve, in around 12 months, the sp should be a lot higher than 19c and these funds could have been raised with less dilution.

I expect not much take-up with the SPP at 19c especially if the price trades below, so dilution may be limited and we could see the issued capital increase to "only" around 155-160m shares. That is unless management decides to issue the shortfall to other parties at their discretion at a latter date. We've seen this all before!!!