The GRL liquidity issue is pretty obvious and cannot be resolved. Best option is to either size your trade/investment apprpriately if you require a fast exit or slowly accumulate if you are willing to back an investment and take a long term view...?
It is obvious there are few urgent buyers at the moment, otherwise the stock would be rising. Personally I find it perplexing... where are the insiders? but would not be surprised to see the stock above 40c if a discovery is announced..
Gas production is a very low operating cost business - profit margin on the $77M in-ground value you have calcuated would be very high.
However capital costs to get the gas to surrounding infrastructure is required upfront. GRL will need funds for this. However my preception is that the High Island permit is surrounded by developed fields and hooking into adjacent infrastructure should not be a large cost.
GRL will only need to find its share of this...
A call to the co would clarify what sort of $ would be required.
There are other issues:
The deal with AUT is also about future deal flow.
GRL has mineral resource assets.
The High Island discovery could include oil...?
Just how much has been found?
What will the flow rates be?
AC
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