Very much an anti-climatic response by the market today.I had...

Very much an anti-climatic response by the market today.

I had expected a much more impressive response given the certainty of future cashflow to cover operating expenses with potential upside to generate sufficient cashflows to cover KEY's commitments for future exploration.

Following the UK acquisition, the cost of the Lidsey horizontal well and the Brockham workover we should be left with about $2m in the bank, possibly more depending on what hedging for the UK acquisition/work was taken.

If the additional work on the UK acquisitions are a total failure then we should still have cashflow of about $2m per annum at a poo of US$65 per barrel from the UK assets.

If the additional work is 100% successful then we'll have cashflow well over $10m per annum from the UK assets.

News to come in the near future (ie within the next 3 months hopefully) includes a timetable for the UK assets work, estimate of the KN field size following analysis of the recently completed seismic, details on the planned commercialisation of the KN#1 discovery, planning of drilling the Borsano block in Italy and granting of permits off-shore Italy.

Commericialisation of KN#1 still requires the granting of a Production Licence for the JV partners, building of a pipeline between the well head and the Songo Songo gas plant as well as sale contracts with potential customers.