I don't follow the logic of some of the posts in this thread.
e.g. "If management were as confident as they make it out to be than they should have put the capital raising on hold and made another announcement a week or two later regarding oil flows and pressure."
Look at this logically - if management WERE NOT confident of the results the worst thing they could do is adopt the course they have. We WILL have flow test results sometime this week which will the basis for shareholders to decide whether they want in on the SPP or not. If the results are no good,SH won't subscribe to the SPP. Stock will be dumped big time and credibility of Management irrevocably damaged with the market. By announcing the SPP in the manner they have, they have painted themselves into a corner as they essentially predicated the success of the CR on the test results. Why on earth would they do that if they were not confident the SH are going to like the results as much as they do?
Let me put an alternative scenario.
Management are honourable and telling the truth on this occasion. The proof is in the pudding once the tests are released. SH like what they see and subscribe to the SPP. CTP goes on to prove a commercial oil provence.
If the CTP had delayed announcing the CR as Buc suggested, until after the test results, the SP would be shooting upwards and there would be a lot more Johnny-come-latelys on board and eligible for the CR, much to the chagrin of LT holders like Jaks etc.
We will know soon enough what we have and have a proper basis for making a reasoned decision regarding the SPP. We will also have the luxury of being able to consider that information, discuss it and analyse it before we have to make a decision to stump up any cash.
Sorry, I am not seeing that as a bad thing.
CTP Price at posting:
50.0¢ Sentiment: Buy Disclosure: Held
