Hitting gas and condensate is not the problem here. Question is going to be the natural flow rate and rate of contaminants
Old data suggested 7mmcf. Usually initial rates are going to be higher.
I wish they can raise capital at over 7c but this is a figure that is >400% of the current price.
Unless they hit flow rates of gas and condensate that is like 20 times the expected number and the reserves are 10 fold higher than first thought then I can see >7c scenario.
This next raising would most likely be in the $20-$30m range. There is going to be a huge dilution factor that is going to come in. Obviously raising capital at 7c is much less dilution at raising capital at 5c or 3c.
Good thing is that the last raising was heavily over-subscribed so seems there is demand for this stock.
AWD Price at posting:
1.6¢ Sentiment: None Disclosure: Held
