IF NWE has achieved the success it claims, then the most valuable thing they have is their stake in EP413.
Selling their share down is the only viably way for them to participate in a horizontal well AKA A3, unless the SP does a remarkable turnaround.
That could happen if the A-2 well "cleans up" or whatever they claim to be doing toit right now.
There is next to zero chance of a capital raising. They'd dilute the company by 50% to get another 6m.
Bank debt - unlikely, but possible. Depends on the lender. It's surprising what banks will and won't lend for, depending on the relationship manager & the relationship.
My bet is a sell down of EP413 to about 17-18%. I no longer see NWE as a potential 300m company.
NWE Price at posting:
1.1¢ Sentiment: None Disclosure: Not Held
