It's only dilution if it's not buying anything. You don't hold...

It's only dilution if it's not buying anything. You don't hold as great a percentage in the company, granted, but that company is now much larger than it was.

It's just like I'd rather hold a 5% stake in BP (a massive British oil company) than a 50% stake in RRL- my holding wouldn't be as large in percentage terms, but the assets within that company are a lot greater. So it is here as well with the Trinidad acquisition.

Honestly, some people really need to man up. The so-called 'dilution' is a whole 8%, and has trebled our oil production overnight, increased our exploratory upside by 50%, and ensures we have cash to fund the remainder of our projects for the coming years.

I do indeed call them stupid as I remember well what happened in the last 'dilution', when we had that rights issue at 2.9p. People were moaning then despite the fact the Texas discovery had underpinned their investment at those levels, and took the price all the way down to the placing price while whining about dilution irrespective of the fundamentals.

3 months later those same people were buying back in at 7p on the spike in Summer 2010- and the fundamentals hadn't changed one bit (except we'd had a 100 million share dilution to get 10% of Trinidad- puts the current 38 million shares and $52m for 90% into perspective I think) It was a sell at 3p, but a buy at 7p- quality investing.

I'm much, much happier now than I was this time yesterday, despite the fact a nice 15% has been slashed from the companies valued (at the time of writing). Over the long term the company is now derisked and still has exposure to very significant exploratory upside. What more could an investor ask for? Before today I was a bit apprehensive that PL might pussy out and just take 20-30%, but it's nice to see a nice sized placing used to get the whole thing. Give it 3 years to come to fruition and it'll support the current market cap by itself at 4000bopd. Over the long term (3 years) this company is pretty low risk, but also has pretty high reward as well. Not often you get something like this coming along.

Sure, PI's on the AIM place a very high time value on their money, and aren't thinking in terms of 3 years (more fool them IMO). For anyone who is, today is a very good day indeed.

And I sincerly believe in 3 years time this whole company will be huge. Forget the 10-20% swings, think about the 1000%+ profits you'll have coming your way in the long run if this comes off (in 3 years or so).