The $9m is for the drilling of two wells and completion of one. MEL share of O2 drilling should be circa $1m. This aligns with O1. The $9m is gross, not net.
They will need circa $2.5m of liquidity to drill both and complete one, with a small buffer built in.
If they refinance the KBC loan they will have circa $2.2m of liquidity. They won't need to expand the finance facility by much to have sufficient liquidity and a connected O2 would have them comfortably cashflow positive, even if O1 stays at current levels.
I agree that this refinancing will most likely not be with KBC and I realise post wasn't clear on that. However, as much as KBC don't want to supply funds there is a legally enforceable agreement which makes it a possibility.
The $9m is for the drilling of two wells and completion of one....
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Mkt cap ! $7.493M | |||
| Open | High | Low | Value | Volume |
| 0.5¢ | 0.6¢ | 0.5¢ | $5.448K | 1.089M |
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| No. | Vol. | Price($) |
|---|---|---|
| 7 | 1216460 | 0.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
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| 0.6¢ | 5982504 | 7 |
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| Last trade - 16.10pm 27/05/2024 (20 minute delay) ? |
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| Open | High | Low | Volume | ||
| 0.6¢ | 0.6¢ | 0.6¢ | 775 | ||
| Last updated 15.59pm 27/05/2024 ? | |||||
| MEL (ASX) Chart |