Since the mainstream financial sector stopped funding oil and gas projects in the last few years, the writing has been on the wall for the small-and-mdeium cap O&G explorers. It's just getting too difficult to fund new projects, other than through highly dilutive equity raisings. To be honest, I'm surprised it has taken this long for all the juicest smaller O&G companies to be gobbled up by large players (who can self-fund from cashflows) or taken private altogether, by the likes of Gina or private equity. I wouldn't be surprised if the board has a similar long-term view. I'm sure there will be more opportunities that pop up, but I think, as a retail investor, I'm going to be much more risk averse going forward. Let's just hope the board can negotiate a decent exit price for all of us. And if, they hold onto a few assets, they have the cash to bring our assets through to production without being so reliant on capital markets.
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