$5.0 million for a well that is anticipated to cost $5.5million leaves you $500k short before overuns/overheads and all other associated costs with running a Company.
So to break even they will need a big top up.
I would also expect that conditions attached to the next tranche of $2.5million will be associated with what the funds were spent on (ie) drilling or asset creation.
GDN will not be handed debt funding cash just to run their Company. It just won't happen.
CR guaranteed
IMO DYOR
GDN Price at posting:
6.1¢ Sentiment: None Disclosure: Held
