re: Ann: COMPANY FINANCING UPDATE AND ACQUISI... Hmmm, it was a...

re: Ann: COMPANY FINANCING UPDATE AND ACQUISI... Hmmm, it was a complicated announcement, that is for sure.

This 4% aquistion could be a goer for us. Nearology puts the odds in our favour for a hit with that one. D%L2 to come online next week. Sounds good! D&L3 to start very soon in my opinion. And it looks like Mound II is being pushed back a few months.

Now for the finances...

RI at 1:1 at 0.5cents.

Lots of dilution, but we will lock in a fair bit of cash for our 2011 endeavours. Ultimately, if everything goes through, the # shares on issue increase to around 2.3million, and there will be about 700million options flying around.

If half the debt is converted to shares, that would leave us with $2.9M of total debt, correct?

Add the $4.7M in cash that the RI raises, and it seems like a good deal. That $2.9M can be knocked off pretty much with the sales of D&L1 for the next few years.

All in all, I'll be taking up the RI. The shares are going cheaply and those options look like a good deal. Long expiry date, and plenty of time to get lots of wells into production by then.

Complicated, but all around I'm pretty happy with that announcement. Ideally I would've wanted to raise less capital at these prices, but thems the breaks.