That is a pain. Considering the fact time lines have slipped, they will likely be able to fund drilling of next two wells from free cash based on current prices.
I’ve never seen markets take a credit raise well particularly not at a 20% discount. Further dilution. The only positive that can come is that they no longer take up the Ramas Capital funding which would have/will resulted in larger dilution.
Alternatively they will continue with Rama’s, for two wells and this is for the next 4 wells which will confirm WF facility.
Still a lot of dilution - would have preferred less and used likely cashflow to fund.
FDM Price at posting:
26.5¢ Sentiment: Buy Disclosure: Held
