Kooka, this company is not exactly overflowing with cash. A company by law is technically insolvent if they cannot meet their debt obligations as they arise. Not once I have I said that they are insolvent. However, unless they can ramp up production to "sustainable levels" i.e at least 15mmcft/day, they are starting to run into difficulties without borrowing more of undertaking another capital raising. But these outcomes are not fait accompli - at some point they will not be able to raise any $ if they cannot demonstrate a good income flow. I will only believe MAEs projected 20-25mmcft/day production from CC wells when it happens. I have read for two years "imminent, substantial production" with precious little to show. This company has raised $65M in two capital raisings (at 69 and 90c respectively). Their credibility to undertake another raising if the need arises diminishes by the day unless they can demonstrate sustainable revenue - at least $3M per month.
As I keep saying, the sale of Oklahoma is about cash flow and reading between the lines it suggests that a capital raising could be problematic. It's very unlikely Patterson's will manage another raising - they've been burnt. Pattos 1 May note is quite damning.
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