I don't envisage a capital raising at the end of the quarter. This price correction is just technical in my opinion. RLE has been very frugal with capital raisings and expenditure. The directors have been in this game for a long time, they know there's more than one way to skin a cat.
The MOU with Santos is the thing that confuses me. Why would such a large company be bothered with an MOU so early in the development (actually exploration) stage, when Santos is still short of gas for themselves. If you were short on gas would you process someone else's gas for a fee and let them on sell it for a profit and maybe even sell to your competitors?
Santos has announced a billion dollar investment in the Galilee basin that includes a 140km pipeline. Why go to that expense when they could expand their current operation in the Cooper Basin by moving on RLE. I'm guessing there's more to this MOU than we know.
I'm holding tight; I trade approx. 20% of my RLE holding. I sold my trading ones at 10.5 and 11 cents having bought them at 7.3 cents. They will soon become a trading buy again. The fundamentals are strong, T2 & T3 flowrates should prove that in a few months time.
Just a mug's view, please do your own research.
RLE Price at posting:
9.4¢ Sentiment: Hold Disclosure: Held
