So the deal is nearly done yet the SP continues to fall and...

So the deal is nearly done yet the SP continues to fall and shorts have increased their position.
KAR have now no debt facility to rely on on will need to use cash on hand and future receipts to pay for well interventions and the drilling of Patola.
After production costs and all other company related expenses going forward it will be interesting to see what profit KAR are generating from the asset.
The shorts were supposed to be burnt on the announcement of the deal going forward according to some on here but their position instead increased.
IMO reasons for that would be with no debt facility in place the shorts believe KAR will need to raise more cash to get to higher production as any future profit will not cover all costs.
The time frame also to increase production and cost has not been explained.
Drilling wells in Patola and connecting up will take plenty of cash which is another reason shorts are rising.
We all know what that will mean.