No. of Recommendations: 1
There was an RNS this morning to show that the company had quadrupled its money by selling their Texas interests. This is not a bad return on the investment.

We had been led to expect more but it remains a positive piece of business that would be recognised more that way if it hadn't previously been spun so hard. The share dilution that accompanied the Texas news upset the market and has led to the 5p level being tested again in high volume.

It is interesting to look afresh at the forthcoming news checklist:

2 of the 5 expected news updates (RBL, Texas) are now in and both positive with bonus of license extension and 3,000 acreage increase. 3% "dilution" today is on the downside in the RNS but this offsets cash loan repayments to YA Global and Crede so is substitutional. It could also be seen as positive. The fact that YA Global and Crede were happy for payment in shares indicates that they foresee share price stability at worst, perhaps better.
These people certainly know more than I do.

There are 3 to come in the next few weeks - Guatemala , Colombia and the piece of elephantine significance for long term stability...Trinidad.

I am holding meantime.

Tom
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