capital raising - 40 million shares at 25 cent, page-2

Some details such as the additional acreage from the Ausstock report have been confirmed by the quarterly!

Negotiations for the buyout of SIDC are still ongoing.

The net of it is that on today's % interest, even after the 40M share issue dilution, there is an increase in inferred gas resources for AZZ, at 880BCFnow, rapidly approaching a pretty amazing 1TCF.

This adds an implied $1 per share and taking us beyond $6 valuation for the Eagleford. With an possible increase the working interest to 100% in the remaining SIDC lots the implied valuation could approach $10 per share.

Of course a lot will hinge on the success of the first wells as to how much can really be inferred. Overall AZZ have improved their position so I'm pretty happy, but would have preferred more detail on HK farm in interest and closure of SIDC negotations. Seems like the Ausstock report jumped the gun.

Wonder when we will see AZZ trading again or if they wait for SIDC to conclude negotatiations.