I have sold out of PYM for the second time at a hefty loss, because it is obvious to me that they need to raise fresh capital for the up coming Austin Chalk well. The dilution might be 25% to get enough capital for just the 1 well.
Having viewed what has happened with the other wells drilled in the area by other operators, there is a definate risk of drilling issues occurring when they drill this well.
I see little upside to the share price even when the well is being drilled. I would rather get back in when they have reached total depth, even if it costs slightly more to do so.
With a further top up when they have the liner etc in place and we have an idea of how many natural fractures the well has encountered.
I don't doubt the play and its value to the company.
Its just the risks are too high right now verses the reward, get the drilling completed and its a whole different story.
Hope that explains it.
LOTM
PYM Price at posting:
3.9¢ Sentiment: None Disclosure: Not Held
