CNs option exercise is not an issue whatsoever. It was just poorly executed.
Her 20m at 6c HAD to be exercised by June 30 but FAR does not have an employee loan scheme, like many do. So she was going to have to find $1.2m from somewhere and contrary to opinion, ED's in sub $1b really don't have that kind of lollie laying around. $550k is a reasonable salary but after tax and living (say $125k after tax), lucky to have $125k left but that's not enough to make any real difference to the exercise equation. So I recon she and the other option holders would have started trying to find financing early May.
They would have had offers for option finance in Oct and Nov but would have likely been advised legally against this given that they had confidential technical information about the discoveries but were not in a position to disclose, let alone deal on any shares.
So after the IPs was the only clear window that they could have aimed at. But it was a pathetically small window and the instos/brokers could see it coming a mile off. They would have received offers to place the shares, but I suspect they, as a group, baulked/delayed/didn't agree/whatever...but it hung in the market way too long in the first 3 weeks of June and they were cornered into doing, quite frankly, a shite deal because they had no choice by the last week of June and had to bend over and accept the 1.5c margin.
Don't forget, it really had too be done as a group deal...it wasnt just CN (there were 52m done so CN wasn't even the majority) and sometimes its not easy to get everyone on the same page.
Re the $11m est spend this Q; its higher than I'd expected (A$7m), but not so unreasonable. Firstly, as has been pointed out on another good post, FAR have always over 'guessed' their ests. They are in full project mode; seismic (say US$10-12m), Project/engineering teams (US$3-5m/qtr), tubulars/cement for 3 wells ($5-8+m/well). BOPs (US$2-4m each), bigger shore facilities, other rig consumables, etc, etc. There is one hell of a list of things, aside from rig rent/deposit, that need to be ordered and paid for before the rig even gets there.
But I'm just guessing. CN and GR have always been good for a chat so, come Monday, I and a probably quite few other HC posters will hopefully get some more meat on these bones.
Re CR: FWIW, I'm now firmly in the post SNE2 and/or SNE3 camp. I just cant (really cant) see Farjoy agreeing to an entitlement issue at these prices. And even then, there would not be enough of an information lull to crack off a rights issue before the 3rd well. Personally I think they'll squeeze off another quick placement before the last well, and then do a decent sized entitlement ($75-100m?) upon positive results from Bellatrix.
Cheers,
FAR Price at posting:
7.3¢ Sentiment: Buy Disclosure: Held
(20min delay)