success of cr, page-28

Fair enough,
I can give you an explanation...

in 6 weeks NWE will be trading much higher on current sp making the CP an extended dilution...

at March 31st NWE had
$2,624,000 cash at bank and deposits on call

less estimated cash outflows
$660,000 exploration and evaluation
$116,000 production exp
$438,000 admin

=$1,410,000

plus refund of JV contributions
+$697,000

=$2,107,000

plus interest recieved, and recoveries, net of 'other cashoutflows'

+100,000
=$2,207,000

$2.207 million is the expected cash at bank balance June 30th, or Today...there is nothing of material announcement to suggest otherwise... in the CP ann, NWE state the with the fracc spread delay it has been exposed to potential cost overruns... 'potential'... that means its only a possiblity... hahahaha...
...

I guess I do not understand the Bharat Perth Basin farmin terms well enough...I was under the impression Bharat providing $15 million in exploration and drilling funding..towards EP-413, and TP/15... and that we were free carried through exploration????


there has to be another way to attain funds without the dilution on future profits...

for example 874million shares on issue... post CP 974m...
(seek to raise $5million placing 100 million shares)....
if $1 billion dollar company...
$1.14 SP pre CP... $1.02 SP post CP

so that 5 cent placement... costs me/us 12c per share...
12/3.6 (my average buy price(guess))
=3.66
this costs me 3 and 2/3 baggers of returns on a 1 billion dollar company...

If NWE could wait 2 months which I suspect it could...
say a sp of 12c
raise at 10c for 30million shares
makes it
904million shares, on 1bill Cap = $1.1sp or
only costing us 4 cents per share... or costing me only 1.11 baggers...

on a 10 billion dollar company, this placement costs me 36 baggers...


raising any funds is dilutionary on future profits...
the more leverage the company has, the more dilutionary effects any cp poises ...
What NWE need is a short term debt facility, a small loan from bharat, or from another instituition, a restructured deal, a bonus or cash payout, or further support... or to delay, if possible the CP... or to reduce the amount needed to raise is a very viable option...
even say raise $1.5 million, to get them through the next 3-4 months (assuming last cashflow estimations), so we can get some juicy flow rates leading to SP performance on the board and a better structured CP at prices we know to be more favourable ...

expired options has been a good outcome...
is not supporting the CP a good outcome?...
well... for me, I think so...


Is NWE really in that much financial troubles that a placement is needed right now?
well.....
I dont think so...but in a few months yes...

maybe our board needs more months of financial security, because not long ago no-one thought this money was needed pre fracc, and now it has come as a huge surprise...

We have a great team here...I don't think we could have better directors working for us...and to date they have done nothing wrong, the delays have been out of their hands...
maybe I am being naive, maybe I am missing the point...perhaps I am being greedy...
I'm just thinking about the 3.6 baggers the raise will cost me down the line...and thats only on a billion cap, this could go much further...

we have given Bharat an easy vehicle to attain whopping TCF.. give us some more moola you tight arsessss hahaha...

greenies have hit us hard financially... lets show them we mean business and flow the most prolific continuous gas Australia has EVER seen...
you better believe it...

go on, raise the money... I guess we need it if we are told so...but I don't support it...

shrewd crude, the alter ego...

.^sc