It will be interesting to see how this plays out.In my view, the...

It will be interesting to see how this plays out.

In my view, the catalysts to a successful Rights issue are:
- news on progress of KN-1
- news on progress in Italy
- news on further JV's (likely to be Ruvuma)

You have to give management credit for being around long enough to know that the isue of rights in this type of market, without the momentum created from further announcements, would make it a borderline proposition. I believe they would be aware that things could get ugly if it fails, having decided not to have the offer underwritten.

The UK announcement, on its own, would surely not be big enough to get the Rights offer across the line.

Suriname is outside their control, and would have to be fairly monumental to make a material difference.

I don't think Italy would have enough of a positive impact, as it would most likely relate to approvals. Progress on drilling there will be the real catalyst for KEY. A farm-in partner would be a positive.

Which leaves us back at KN-1 or the smokey, becoming a drill-in partner at Ruvuma.

I'm hoping it is progress at KN-1. Ruvuma is a risky proposition whilst maintaining cash is a priority, however drilling will commence shortly, so it may have a positive impact on KEY's SP in the shorter term. Something they need at this point.

Let's hope management have read the game.