Correct. As with all capital raises strike while the iron is hot. They had a good initial data analysis and now we wait for a partner or acquisition. Cash flow should be good till end of year or slightly beyond. $468k left + $1m raised - $244k operational burn per quarter - approx. $183k per quarter for 3D data payments would leave around $187k by end of year with still about $183k to pay off the remaining data costs (calculations based off last quarterly cashflow statement on 31 March). This is just a rough calculation but basically sets EMP to be debt free till end of year with 3D data ownership and time to do deals and negotiations before needing more capital.
They say you need to spend money to make money and in this case I think the 3D seismic data was a big step in firming up gas fields and helping with negotiations and confidence going forward.
The fact that the seismic data was something done in the region bodes well also that there is interest in gas plays and as per one of Colnago's posts there is suggestion that ExxonMobil will be significantly adding to their drilling campaign to sure up supply of gas over the coming years.
EMP Price at posting:
3.4¢ Sentiment: Buy Disclosure: Held
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