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35.5¢ warrego energy limited

Ann: Rights Issue Shortfall Notice, page-113

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300588

1,137 Posts.

285

19/04/18

00:29

Post #: 32542129
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Originally posted by 300588 ↑

Sorry Dollar, I disagree with the inference that shareholders are responsible in protecting their investment - in this instance, by throwing more money to protect current pool. The risk/reward ratio has gone up 10 fold since November last year.

100% right, exploration companies do not have cashflow and rely solely on shareholder funding or investor funding. Not until they become producers are they measured on profits.

The most exciting time to invest in a company, is in the exploration phase where you’re investment can increase exponentially rapidly.

So ofcourse, analyse the ‘project’ and summise the probability of success (discovery), and from that decide your risk (investment amount).

On the facts initially presented, the risk/reward scenario was very clear. Investors had a defined outline of the project at hand. You could measure against other O&G exploration co’s and weigh in the risks associated with potential discovery.

At not one point did I consider finance being issue. At not one point did I think management would skimp on necessary employees (drilling engineer) - there was money in the bank. At not one point did I consider our inaugural partner SEI back stepping on their commitment. At not one point did I consider month lay overs for parts.

These are all ‘excessive’ risks that a competent management team would mitigate. PRL management have failed. Can I ask, how many times would you lend your co worker $5 for lunch before you said no? I’d say 3-4. I believe we’ve had 3 substantial CRs in approx 12 months. All in which we were told would see us through the 4 well programme. They’re taking the p*ss aren’t they? If I was the financial controller of any company and I had missed the project budget by 3x excess of initial budget; I’d be sacked and unemployable. It’s laughable.

I’m so annoyed by DC comments; shareholders have indicated how they want us to proceed. That’s very insulting. I’m glad it was overwhelmingly undersubscribed. It’s a wake up call to management that they couldn’t keep treating share holders with such distain. I honestly think he was surprised. Now he has to work for his money. He’s not enjoying all these meetings where no one understands him, he’s getting zero rapport, it’s sticky and hot with no aircon.

The best way to protect my investment, was hold at this stage. I did not participate one cent. And I truely feel bad for those that did (at this stage), I hope you’re rewarded later on. I will hold till June, sell half, hold till death. It’s the only win scenario considering tax.

It was black and white that the CR would fail without a monumental announcement. The success of this relies solely on a partner/funder/creditor helping.

I actually am still not over the fact they came to us again for money. It really shows the lack of respect they have for shareholders.

The positive I take now; is that they will have to work to save their arses, they’ve put themselves in an embarrassing (for pride driven people) situation because their management inadequacies have been exposed.

I don’t envy their job but they want to fly in the emirates first class suites, they’ve got to do some first class work.

And dollar, this is pointed at you. Just expressing my view of the disrespect from management.

Whether the SEI partner buyout was greed or forced, that’s still hazy. But it is the catalyst of the predicament we’re in and it’s still a management fault either way you look at it.

Good luck. We need it!

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Sorry dollar I meant this *isnt* pointed at you.

PRL Price at posting: 0.3¢ Sentiment: Hold Disclosure: Held
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