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robynjackson

263 Posts.

16

07/04/20

20:21

Post #: 43936721
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Originally posted by Teddyward: ↑

Simple numbers - Market cap 3.2 at $2.10 if it were to close at issue price

Raising 1 billion

so a 30% dilution!!!.

What was fair value market cap at oil $50 before Corona? Take off 33% to get todays possible number if oil gets to $50.

The savings OSH has made are reducing capital expenditure that in turn ultimately reduces possibly of future output. less exploration, less workovers less maintenance etc

By raising they have cash to get exploration assets working cheaper in downturn and guarantee supply contracts with real resource and bring it online before others so other won't get finance for possible oversupply.

Gas still in shortage going forward and if OSH has had to do 33% dilution to get a billion away then god help others if they try in same environment.

Just some thoughts

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"Gas still in shortage going forward"

No it isn't. There is worldwide glut now and for the next 5 to 10 years.

OSH Price at posting: $2.73 Sentiment: Sell Disclosure: Not Held
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