Hi Exceptional1Yes i bought in to the company after doing some...

Hi Exceptional1

Yes i bought in to the company after doing some Due diligence, and continued doing further due diligence after purchase. I then realised a few things that I didn't prior.

But first, about the CR comments:

Yes i did say the CR would be a significant derisking of the project, because the company would have had to turn the lights off if they weren't successful at this raise... and possibly delisting again.

They were supposed to be Raising $5m at 10 cents. That's what the term Ord Minnett sheet says. Plus up to $2m being raised in a SPP.

instead they were only able to raise $2.8M out of $5M from sophs. That doesn't give me confidence moving forward. (But still, better than nothing, and lucky too).

Also I noticed that they are burning through the cash by paying themselves director fees and paying CR fees and so on. Most likely, those CR fees are going to themselves because they own and operate Trident Capital and also Price Sierakowski.

Price Sierakowski specialises in capital raisings, so I highly doubt they are using any different firm than their own firm to raise capital.

I just didn't get those good feeling vibes from the board. As I said, if they actually deliver on their promise of starting to sell the gas they already have to small locals, then I would happily reinvest. Because that would bring cash flow in and to keep the lights on.

At this stage though, investing in this company is a gamble on whether they can deliver on selling that gas (they say they are in advanced negotiations, so let's see how that goes), plus, whether they can actually get a SA insto to fund the big drilling program in the future. If they can't pull those off then it's game over. But if they can (especially the SA insto funding the big drilling program), then they will eventually sell the company for big money if successful. It's still very very early stages right now.

Until they start selling gas, they are surviving off CR money. Instead of being very careful with every cent, they are burning it. That's my biggest worry

I still believe the project has significant upside potential, but I need to wait until I'm comfortable with the cash position and cash flow + progress before re entering.