Ann: Securities Released from Escrow, page-12

Now AFAIK, preliminary final report for the y/e 30th June is due to be filed by 30th Aug, 2019 with annual audited financials due by the 30th Sept. While the balance will be as at 30th June ... it will give the true "dire straights" tune as to the health of the company and its project and just how desperately the right issue was needed.

Slide #3 of the presentation that accompanied the rights issue was already quite "revealing"


Now that presentation was released Jul 1 to support the rights issue and as noted on Slide #12 to
"Significantly enhances the appeal of CE1 to investors, partners and potentialacquirers"

As I said then in posts
https://hotcopper.com.au/posts/39407405/single (7th July)
"It's the next raising that gets cash flow and I need a credible explanation for why this won't be done at say 1.2 - 1.5cps in 6 months time? "

and

https://hotcopper.com.au/posts/39831383/single (2nd Aug)
"The next CR will be what ... at 1.2? ... Could have exited at 1.8cps
There is no logical reason to produce more gas (and at a marginal cost above our neighbours). Irrational."

Well we just traded at 1.2cps and it is still August.

Doesn't appear that the Rights Issue did anything to enhance the appeal of CE1 to investors. Perhaps it really is just about the marginal cost of production. The July RI kept the lights on so that:
1. Testing could be completed (another $2.2M)
2. Complete negotiations for egress of gas
3. Put together a debt proposal to "partially fund" the $19M (or $20M) pipeline via revenue from CE1 existing wells
4. Creating a plan that is "financially robust" at current prices.

What do you think that means ... current prices in say June & July of 2019 were:
AECO: $0.61 and $0.90 per Mmbtu ... so about CAD$0.80 - CAD$1.20 (as opposed to $2.33 and $2.30 for HH) in US$/Mmbtu
C5+ (Condensate) traded between a low (Jun 14) of CAD$60.41 to a high of CAD$73.67 (Jul 10)
No joy either for BC Station 2 gas pricing


I'm just finding it difficult to see CE1 project as "financially robust" at current prices (in same boat as $4,400 per undeveloped acre).

Perhaps a mid-Qtr update on points 1-4 is overdue ... afterall that was why the RI was done.