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Ann: Non-Renounceable Entitlement Offer Document, page-231

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BangForYourBuck

641 Posts.

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07/03/18

15:29

Post #: 31593892
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Originally posted by 300588 ↑

F&F appreciate your passion and hope you can recoup.

SEU has agreed to give 2% over rising royalty for the outstanding invoices. We don’t have to cough that up. SEU can buy back that premium at 50% premium. Roughly 2.5mill. If they don’t opt to buy it back. Newforce can exercise the option to retain 10% in project.

The forecast to drill well2 and Canada de fea, is 2.9 mill. They’re estimating 3 days to get to bottom of well 2. If they cannot, they move to Canada de fea and still to 1600m. The 2.9 will cover this.

If fully subscribed, they are saying, we can drill to TD of well 2 (if possible past fault). And we can drill next hole aswell. The residual will pay creditors and overheads. That gets us in the clear and back on track, no problems.

If half subscribed. We are not drilling. We pay creditors, rig standby costs and company over heads. Whilst we wait for funder - THIS IS THE MOST LIKELY SCENARIO.

If less than half subscribe. Pay whatever raised to creditors and continue to find partner. If no partner found, Game over. THIS IS THE SECOND MOST LIKELY SCENARIO.

If partner is found..depending on agreement, the project would be able to be completed.

In summary; finding a partner is important. But if we want it to drill, we are being black mailed to participate as it’s in our best interest to find out what’s down there. And the quicker the better. If holders want to risk waiting and hope the company finds a way without our money, might be sorely disappointed.

Very hard spot. I don’t believe there’ll be a positive announcement to spur the raise. I think the Ann was using scare tactics and hope (as we’ve done before) we’ll cough up. They’re just as nervous about getting funding as we are.

So, it’s prob not as you say. It’s quite clear what is required and where the funds will be going. What’s not clear, is if the funds will be raised in the interim or whether we’ll be sitting here waiting for a partner - that’s the only timeline not given - how long will they look for a partner before liquidating.

All in all, you haven’t done your cash. Management are going to have to give a fair sweetener to potential investor to save this. Which they haven’t been willing to do. Blame Schuepbach- that is the sole reason we’re in this mess. Drilling mistakes happen and things go wrong...but your partner bailing on their commitments to the project makes it pretty hard. They’re obv in financial strife or over committed elsewhere.

DC ultimately is responsible but I guarantee Schuepbach have made this project an absolute disaster due to their non commitment to their part of the deal.

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Outstanding commentary and analysis 300588. The only small correction I would make is that it is not going to take 3 days to get to TD on well 2 , it is actually 3 days to see if we can get past the fault. But this is the best and most accurate summary on PRL's plight that has been posted since the CR was announced. Thanks.

PRL Price at posting: 0.4¢ Sentiment: Hold Disclosure: Held
5 Upvote

0 Great analysis

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Ann: Non-Renounceable Entitlement Offer Document, page-231

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