1.To ensure that the Company is able to meet its interest payment
obligations to July 1, 2010 and to otherwise assist the Company in meeting its
obligations to the Debentureholders, an amount equal to the first two interest
payments payable under the Debentures will be deposited in escrow at closing

2.The net proceeds from the Offering will be used for development
activities on the areas covered by the Company's Hungarian exploration and
production licenses, as more particularly described in the final prospectus.
Closing of the Offering is expected to occur on or about June 23, 2009

Thanks John for providing the crucial information to us lazy people, from which I note the 2 points which re-assures me. Being in the financial industry, I can only confirm that raising money in this climate is a horrid task and that FO has (maybe) up to $55mln is quite remarkable. I am eager to hear the confirmation of this after the June23, 2009 which should stabilise the SP furthermore.

One point which I am not clear is regarding the Explorations licences, it they are due to expire by 31dec2009 and that the company has to renegotiate within 6 months before expiry, this suggests to me that they can do so after Exxon announces the test results sometime after October this year ?

Other than that, the raising of funds for the development of activities in Hungary indicates further upside potential should the results from MOL's exploration site (HUd../)with Exx come before the results of Foldeak 1. We may therefore be seeing some activity on the SP should this scenario happen. A comprehensive explanation of the use of funds has not been provided in my eyes and I suspect it provides the company some financial strength for further negotiations in the exciting months to come.

All in all, one may say nothing new but if you read between the lines, the ingredients are being assembled for an explosive Autumn !