Qjumpa, debt finance in the risky O&G game is the least...

Qjumpa, debt finance in the risky O&G game is the least desirable of all possible sources of finance. Debt finance has the inevitable consequence of having to be repaid and normally comes with a number of nasty conditions, the breach of which has serious implications on the future of the business.

As a general rule of thumb, long before financiers are falling over themselves to lend serious cash to a business, the market has already recognised potential and the sp would be up and away. Any debt finance acquired by GDN will require directors' guarantees including security on their personal assets, headroom covenants over sp will also be put in place. The level of risk involved to the financial stability of GDN would fly in the face of everything the directors have done thus far to secure financial control and debt free status.

The sort of cash required to develop the field to it's potential is only available through injection of capital. Farmin at this stage before the field is properly evaluated will require GDN to relinquish significant ownership for a pittance. Directors have demonstrated that their preferred option is the source of finance which will retain the debt free status and 100% ownership, regardless what they might say otherwise.

Capital injection by way of option cash at 12c a share is by far the best way to finance things. It amuses me that many cry in their beer at the thought of dilution which in actual fact is a furfy when you consider the value added by what the expenditure of the cash actually achieves, if it is directed properly.

If you do some in depth homework by examining the actions of management thus far and ask them relevant questions regarding their priorities you will come to the same conclusion which I have, oppys are the intense focus and everything else which is happening including the timing agenda fits nicely into that picture.

I have some knowledge in the operations of producing gas, but my main area if expertise is in finance related to these O&G puppys. Then again, if you have an realistic alternative scenario, I will be happy to hear of it.

I do agree, and the directors are aware of it, they have this one last chance to come good. OTHERWISE it will get taken from them and someone else will do the job.