capital raising, page-10

Not such positive news, especially so much dilution required, 15% discount for 25% less company. It is of concern that they are raising $15M which is equivalent the years cash loss, after promising so much with 3000 BOPD by end of the year and the Pheonix buy in. While the increased intensity of drilling in Thailand by the new partner is costing them, there must be some more significant exploration effort going into their other interests in Thailand which is promising. I will have to check previous financials for costs of 3D acquisition and processing, but from memory wasn't it quite low cost for drilling, something like $1M?

This need for capital raising now is unfortunate, but driven by some unusual conditions, with the costs of the new operator increased drilling campaign, and having so much production shut in this year by regulations. Maybe the writing was on the wall, and this is why the volume had dried up recently, waiting for this opportunity. Let us hope the pain now will be a springboard for some modest gains by the end of the year. I am certainly not concerned enough to sell yet.