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9.0¢ real energy corporation limited

awesome response.... bring on the next 12 months.

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phogg

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12/10/17

10:25

Post #: 27846966
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Originally posted by Dollar@nearly51 ↑

Mr Scott Brown emailed this response to our email yesterday and We thank him for taking the time and courtesy to reply.

Good Luck All

We feel it is the best interest of the Company to raise capital at this time. This will allow us to accelerate our program and give us circa $9M to fund the drilling of 2 wells. Gas projects are very capital intensive to bring into production. Our company has used comparatively little capital to get where we are with a contingent resource of 672 Bcf. We are very efficient in how we run the business. We see a great opportunity over the next three years with the gas market and we need to move now. While we may have some short term pain the Company will get re rated particular if we can get into production, which we are very confident about. Also, we will be able to move our contingent resources into reserves, which would move the dial big time.

The board was not willing to sign up to a drilling program until we had the funds in the bank. This placement gave us enough funds to commit to this program. We could do what a number of other listed companies in the sector - that is sit on their projects and not do any field work (ie Blue Energy) but our view is to have a go. We are not a lifestyle company. We see 2 wells as probably the minimum for the program.

In recent times we have thought about the best way to advance our existing project. After considering many options include a full takeover for the Company, we believe the current raise is the best way forward in that it gives us certainty, is the least dilutive and gets us to our medium term objective of production.

I should also mention that I am the biggest single shareholder in the Company. I have lots of incentive to see a higher share price. While directors can not participate in a placement, I have recently asked the board for approval to buy shares on the market. I intend to top up if the price comes down to 9 cents.

Kind Regards

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awesome response....

bring on the next 12 months.

RLE Price at posting: 9.6¢ Sentiment: Buy Disclosure: Held
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awesome response.... bring on the next 12 months.

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