10 percent 'maybe sometime in the future' placement? Plus seeking signoff on the Orexplore/working capital placement from July. So potentially 25% flexibility without shareholder approval as I read it (please correct if mistaken)?
Potentially opportunities for new large contracts, requiring new rigs - but difficult to fund out of working capital. As much as SWK will have a pretty new, efficient fleet - they are almost maxed out without the spare rigs that BLY, Major Drilling etc have lying around.
New say 5 rig contract would require $5m of capital expenditure + mobilisation costs. But would likely return $1.6m - $1.8m p.a. in EBITDA. So I can appreciate why they need to be ready to move.
SWK Price at posting:
28.5¢ Sentiment: Hold Disclosure: Held
