Choclit This is not going to save the company. Oil now 29 , cash...

Choclit
This is not going to save the company. Oil now 29 , cash margins at around 7 to deliver only 10m USD assuming a 1.2 m prod profile. If they are forced to hedge now , they are well and truly stuffed with the only salvation being a huge dilutionary capital raising . Problem is with debt being USD and AUD falling to 68 they will need to raise at least 20m Aud to have an impact which would be circa 200m shares

Tap are in trouble , even if they survive they will be diluted in a big way. I think they should flog the gas contracts for say 12 -14 m aud, raise another 10 m aud and that way they can ride out oil price for 12-18 months without hedging