Capital Raising, page-32

You always want a company to raise money pre spud even if they technically dont need it and can fund the next 12 months in the event of a dry well, as can PVD. The company will be alot stronger if the well fails as the share price reflect the cash in bank plus a premium and can get on with making deals and fat salaries. They would not need to raise money after the well as this would be fugly. See a host of other failures in this field which took at 90% loss or more after dry wells. Management would have no credibility if they didnt tap the market for extra cash in this situation.