Please do not confuse "activity" for "productivity and good managment decisions".
The fact that this 3 man board, lead by Dr Henry Askin, is making public statements, does not instill confidence in me.
I suspect that the next 3 monthly financial report, will show that the company is "burning money" and that it will need to either do another CR some time later this year, or sell the family silver.
One only has to look at previous reports and do some calculations and it is apparent that the company needs approx $6 mill just to tread water each year.
I will assume for the sake of simplicity that the money held prior to the latest placement (approx $10 mil), will soon be gone on various expenses, ie litigation, and the 3d and 2d seismic.
That will leave the $11 mil recently obtained, less commission say $5-600 k, a balance of $10.5 mil (Best position)
Now take out $6 mil for the next 12 months operating costs and you have approx $4.5 mil left to do any drilling.
That will not be enough and they will need to go to the market for another CR.
Not only will it not be enough, but any drilling probably will not comemnce until April or May 2013.
I realise that the ANN says that they will have the mapping done by August 2012. Yeah right !!.
Assume that is correct, UNLESS they are VERY LUCKY and manage to locate a suitable drilling rig almost immediatly, I am confident that they will not be any drilling until mid 2013.
Now I dont know about you, but such a delay and burning of cash and the eventual dilution from yet another CR is not good mangement .
Hope that all helps to understand my position.
In any event its all accademic, they (the three man board) will not be there in a couple of months.
CB
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