a new dawn (again)

In another day we will be back trading, so think it is time for a little recap of where we have come from and where we are now. I have posted much of this previously, but have updated it and it is always worth remembering once the finance is sorted what this is really all about, big fat positive cash-flow

Firstly we are in a significantly stronger position than last September, when we went into our suspension;
* we have stocked our warehouse with drilling supplies, in particular we now have the casing that caused the delay last year when it was stuck in transit.
* there are a number of available rigs that means we are in a stronger negotiating position to get equipment at the best price and have subsequently chosen an experienced rig operator that is ready to go once the cash hits the bank.

Secondly financially we are strong and beholden to no one;
* we €5 million on attractive terms
* we have a $20 million line of credit at an effective interest rate of 7%
* only dilutionary commitments outstanding are the AWDO's, whilst potentially dilutionary if taken up will leave AWD in an even stronger position to drill and complete subsequent high value short payback gas wells.
* we have enough money to drill and complete our well

Thirdly it's just a top project
* previously drill by a bunch of Russians that couldn't handle the gas pressure
* Hydrocarbons continue to flow to the surface even though wells have been capped and abandoned.
* Gas prices in the Ukraine bring 3 x, yes 3 x or more than gas prices in the US

Fourthly SP was beaten down on a CR that never happened
* We were trading at 1.5 - 1.6 when there was a thought that we would drill 1st then look for funds to complete, even up to 2.1 (we now have funds not just to drill, but to complete with out dilution or farming out)
* Our SP went to 1.3 with all thinking we would be 100% diluted with CR, we are not (significantly) diluted and retain our entire share of the asset, this tells me that on no other metric our SP should be at least 2.6 cents

The O & G sector and speccies have been knocked about of late and there are still plenty of disgruntled Paradox Basin holders out there, but in my opinion this is about now and the future, not the past that has been effectively written off to zero. Without the history and RS and ONLY the Ukraine we would have had a more robust SP. This is the safest and most prospective drill we are going to see from a small O & G this year. There have been very few company maker drills this year and this is "the" drill of the year, it is being treated as an exploration drill by the market, but with gas previously hit and a gas receiving station only 5 km's away this is just drill, tap and bank the money.

GLTA Thursday.