I would prefer to be forward looking - management have slimmed down the company over the last few months, and have shifted their focus to their current & impending producers - just like a junior oiler should.
I think that the institutions will look on the raising positively, as it removes the future doubts about funding, and assures the development of BMG - ie future profits. Combine this with the current cashflow generation and I think they will buy up. Current cashflow from 10000 bbl/day @$50/bbl - is covering their ongoing exploration and development also - meaning right now at $70/bbl, $200k/day, $6million/month, $72million a year free cashflow generation to put towards BMG also. (rough figures)
I reckon 75 cents will be around the mark for the cap raising.
ROC Price at posting:
90.0¢ Sentiment: LT Buy Disclosure: Held
