Antrim Energy Inc. ATGYF

RE: Questioning Management(Cash in bank)

[Bigbadoil]

The cash is for other projects which are not near project approval e.g Fyne and Dandy, Argentina Using Oilexco as an example there 2P reserves were valued at $28 per bbl for Brenda after approval of the FDP last year. Now using that number (you could argue it is higher now as Oil prices are up) and assuming the 24 mmbbl from the recent RPF report (that is the most current report!) We get a value of $672mm for Causeway at 100% interest. Now im guessing the costs for developing are $180mm (gross). So there is a 3.73x coverage (672/180) the banks will always finance that! Why not spend all there cash on Causeway? Its a good question, but unless you are Exxon, most companied Debt finance offshore fields. Also they are diversifying their operations by having other operations too. Argentina provides growing and not insignificant cashflow which does more than just "keep the lights on" Another once Causeway reaches plateau, AEN will need to replace and grow production, hence they need new projects. These offshore projects take time to develop. e.g 3-4years in the N. sea from Discovery to first oil! Sure AEN could only invest in Causeway but no-one would not want to invest in a declining asset would they? Bigbadun'