i think you have misinterpreted the agreement RMP have now bought in to a 10% share of both Dharoor and nugaal projects. Consequently they will pay the agreed share of drilling costs. The option to move to 20% on both projects has now lapsed on 31 August. Drilling of Dharoor was always cited as late this year or early next year so nothing has changed in this regard. The next placement will be to raise funds (approx $US5M) to pay for the drilling of Dharoor. They wont need cash for Nugaal for another 18 months or so and assuming that Dharoor is full of oil, they wont need to raise funds for Nugaal at that stage. So RMP have 2 irons in the fire. I agree that RMP appears to be an all or nothing scenario. As cited on other threads, the downside is a 100% loss and the upside is a several thousand percent rise. The maths is not difficult and you simply need to invest in RMP according to your risk profile. The reason RMP is a reasonable bet is that I doubt you will have to wait 3 or 4 years to know the outcome. This will all play out for Dharoor within 6-9 months.
RMP Price at posting:
11.5¢ Sentiment: None Disclosure: Held
