In my experince most debt financing for small companies is using reserve based lending facilities (RBL) but you need to have 2P reserves to access this, which is why RIA have been talking about bringing 2C into 2P with this drilling campaign so that the next stage would be funded through debt.
In hindsight it was obvious to see that this was an appraisal and not development, you could see the outset of the previously held view of where the field extended to and this well was outside of it, so its obvious that the aim was to suspend it as a producer whilst they were also aiming to extend the field (which they may have done with the LC, but they were expecting to also extend the UC).
RIA Price at posting:
26.0¢ Sentiment: LT Buy Disclosure: Held
