tz, page-23

Just out of curiousity, does anyone think KEY are actually serious about selling all their Tanzanian assets?

A thought occurred to me tonight when reviewing their 2010 Annual Report. KEY technically has commitments to spend $20m by the end of the current financial year.

Now, whilst it is quite likely that 3 quarters of that expenditure would get deferred to the following financial year that doesn't change the fact that they currently have those legal commitments and insufficient funds/revenue to cover them.

A company that does not have the means to meet it's financial commitments is technically insolvent and there are laws and listing requirements that prohibit the trading of a company whilst insolvent.

Is the advertised sale of Tz assets indicative of a genuine wish to sell all the Tz assets or a way for KEY to trade whilst technically insolvent, ie buying more time until further news comes to light to boost the share price for a more favorable capital raising? Further news such as drilling success in EP437, approval for expansion of the Songas plant or some such?

Nyuni #2 won't be drilled until at least February 2011 but probably be delayed a month or two or more. Prior to that we have news on EP437 drilling of Dunnart #1 & Dibbler #1, Suriname drilling in the Coronie block with 10 wells and a further possibility of that being backed up with Uitkijk #11 & #12 due to commence this month.