Hi Redfern I think the strategy is for the value of the assets to considerably swamp the effects of dilution over time, it really can't be much different if you have no income and can't realistically have any untill 2018 at the earliest on their current leases. That strategy could pay off bigtime but only if they strike commercial oil and gas. I'ts why it's called very high risk high reward and you only put money in that you can afford to lose.
In the meantime the only reason I can see for them raising cash other than for day to day requirements is for what they have actually stated in the update and that is to look for more leases in Africa and something that produces income in the near term...good luck with that but would be nice.
As for consolidation some do and some don't but it doesn't change the future of the company.
Cheers Whisky
QFY Price at posting:
0.9¢ Sentiment: Hold Disclosure: Held
