Noticed in this weeks presentation cash resources are down to the $1m mark which suggests we will soon be looking at some form of capital raising. Would appear to be a few options. With the current status of the US wells would hope that minimal raising was done at this stage until full potential of current wells is known and factored into SP. Options I can see: 1) Sell some of the BRU holding - personally quite happy with this option for reasons above but could understand reluctance with BRU working relationship to be considered. 2) Discounted share issue - not so keen but as long as not too large - and hopefully to existing holders - never been keen on the sophisticated investor share issues. 3) Loan funds- happy with this option to carry through till wells are producing. 4) Partner found for Canning Shale Gas project with some up front capitl injection - we live in hope.
Very positive announcement today the future looks good and minimising share issues must be a priority.
NSE Price at posting:
17.5¢ Sentiment: Hold Disclosure: Held
