Capital Raise......Going it alone, page-68

I am fully supportive of Scott doing this. It must be better than the farm in alternatives and the project will be easier to manage. The discount is to be expected as sophisticates want a sure thing. They can now sell their shares to recoup the purchase price and retain the Options. The share price will decrease to about 23 cents in the short term.

It would have been better to offer to existing shareholders as the sell off would be less. I would have liked to see the first well drilled first before the capital raise, but this is very high risk and I doubt any CEO would take that gamble. It's not too bad for the shareholders in the long run as the price will recover to reflect the project's vale and it guarantees funding for the immediate program without the insane discounts of Cluff's 1st offer.