DGR directors underwrote placement a few weeks back and have enough cash imo for 2013 but not as much as they would like, this has been the problem for DGR but imo has a good chance of turning around with AJQ and other assets this year. The DGR holding in AJQ is effectively a blocking stake (including AJQO) on any future corporate move in years to come on AJQ, so the performance and decisions made by DGR should be of interest to AJQ holders.
AJQ results over the next few months are key as they are the only junior shale play to take 100% interest in drilling which has proven too costly for all other juniors. Will need both the options to be funded as well as a placement early or mid 2014 to maintain lease interest or AJQ will need to seek farmouts imo to keep place with their plans. Successful flowrates this dry season (again) should lead to a much higher market cap and reduce funding risk.
See AJQO having highest leverage, followed by AJQ and DGR at this point.
Happy to be wrong, but think we need successful well test and flow rates to break 40c.
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