Ann: Appendix 4E and Annual Report 31 December 2015, page-21

A good point you make Nando. I don't think it's a secret they'll need to strengthen their balance sheet as they use their $US500m facility. That is partly what the so called private investors are for, as has been discussed on these threads.

The last raising was to enable them to assemble their team, and pay for ongoing expenses as they transform the company with their major acquisition. The last 2 Quarters they've used $0.7m and $1.0m respectively on their new leases. In the quarter just closed, there would have been significantly more paid for leases, probably the bonus payments on 3935 acres as announced in the ann report.

The annual report also stated they would "continue to pursue the funding for development and capture of additional acreage in this area". I read that as them using different funding (to their $500m facility) to pay for these leases. They had no problems getting $500m, I'm guessing these leases will cost no more than $10m (plus development), so this should be a drop in the ocean for their financiers.

They had $US10.5m at the end of the Dec Q, come April 30 when we get the Mar Q results, that will be under $5m. Starting to look low, but after they finance the lease costs already paid, the balance will look respectable again, certainly enough to see them out this year by which time I'd like to think they've made a major acquisition.

So yes, a capital raising is inevitable, but IMHO will be associated with an acquisition and we wont get a look-in, the US private investors will need to put up a fair bit more than our current market capitalisation.