$REACH / 5256 (REACH ENERGY BERHAD)


I foresee some potential step to be taken by management upon submit regularisation plan before oct 2. management actually having hold this 2 cards in prepare for upcoming submission.

a)retained emir oil LLP(EO) asset under Reach
-own lucrative asset in kazakhstan near integrated facilities.


possibilities to happened
- share enlargement or private placement
- bank finance / loan / bond

most probably through finance would be viable since enlargement dilute ownership of srl.

however in order to stable on operation, financing needed around 50mil to 100mil.


b)dispose EO
disposal of EO would be good choice too. for usd300mil, reach possibly can use for searching better asset. share price is expected to fly up rm0.6 apprxm.

summary:
for short term option b is good . asset monetized. new owner have time to restructure new direction.

for long term option a is good.kazakhstan is great location with higher reserve. if company have cash power this is best option

my view from shareholder side:

i see winning. either option a or b, both winning. shareholder have nothing to lose.