I don't think you understand what I'm saying. Current cash and...

I don't think you understand what I'm saying. Current cash and debt facility is enough to drill O2. They will likely need to refinance that facility, but that should be simple as KBC would likely be on the hook for any expenses due to breaching the loan conditions.

It's binary to me: Option 1: successful well. Least amount of shares on issue gets the best long term share price outcome. Debt is the way to do that.

Option 2: failed well. Company is up the creek and you might as well use somebody else's money rather than tip more of your own equity in. They do that by arranging a sufficient debt facility prior to drilling O2...they'll need the funding in place before drilling the first one.

The only situation that I see equity being raised is if they can't find someone willing to enter into a sufficient debt arrangement. There's just no real logical reason for them to raise equity other than to maintain an arbitrary ratio.