The following are imminent now: 1. Dilution - from the quarterly, no more cash will remain at some stage this quarter (~5 weeks) 2. IOP (merging entity) is a wild cat only company requiring 10s millions to prove up AND millions to do the due diligence on - the due diligence is simple, WALK AWAY! 3. Both Range and IOP will look for a fresh start now and require significant cash to get moving 4. T&T - 10s millions have been spent at T&T for an uplift of ~1/2 BOPD increase per day over ~2 years - T&T is a total lemon and the reasons for the previous owners selling and never looking to increase BOPD is obvious now.
The following are the key options now: 1. Merger goes ahead with a capital raising and significant dilution 2. Merger is terminated with a capital raising and significant dilution
The SP is no where near the bottom IMO as there are no cash flow positive assets, expenses beyond belief, and the number of wild cats require funding are enough for 4 penny companies at least.
RRS Price at posting:
4.0¢ Sentiment: ST Sell Disclosure: Not Held
