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Hence my reference to doomsday scenario. But this is commercially unlikely as no one wins. Cant rule out.

I registered today as often read the boards and wanted to give my take. Some of the update is not much of a surprise but I’ve not seen much comment on what the update means so I’m providing some clarity:

1) of the 4-5 pc they own of the producing asset they are on the hook for their share of the capex. At 51.1m gbp this is around 2.5m. This in itself it’s my much of a problem and can be covered by cash flows from sales. This is a short term issue which I am relatively relaxed about in isolation.

2) the real clanger is the amendment to the original acquisition agreement as based on the updated terms which allowed them to fund the 5musd of working capital via the facility, this 17m needs to be repaid by 31 December 2024 and not the 5 year backstop date. This is the real issue LBE have.

There are a number of options here:

1) do another acquisition but realistically won’t fix in time;

2) if relations good with japex then renegotiate the 31 dec repayment date - this may be the most likely scenario. LBE have the contacts in Norway and suspect japex wont want to frazzle relations in the area.

3) look for external refinancing of the 17musd.

4) agree a farm out in Malaysia that offers cash as part of deal - funds that can be used to refinance the debt to japex.

Realistically equity dilution at current levels isn’t an option.

Realistically a deal will be done with japex as to my knowledge it’s a good working partnership - the terms are there to cover them when things go sour but it’s in neither companies interests to walk away.

I’ve taken further equity today but it’s not without increased risk as there is a doomsday scenario - I just consider it commercially to be the least likely outcome.