Capital Raising, page-34

gosouth

Fair points but imo you maybe missing a couple of external factors that no doubt have shaped the decisions of the company and that is the impact to oil price volatility and the uncertainty in the markets with the pending drilling during this time. The MD who as we know is a major shareholder, does not have sufficient control of the company (5 or 6%?) and reports to a board so this is not a singular action taken. Back in only November when DM was making statements around the last quarter and the year ahead the oil price had started to fall but not a clear precipice that one would have predicted was going to drop to the 40's. If you look at the stability and trend beforehand there was reasonable comfort for $100/bl for the year ahead.    
Since then the oil price has tanked, as did PVD stock and other oiler's which is disappointing for those that want to see a build during the run into the well. It is fair to say that the low oil price and uncertainty has influenced potential bidders for **on and so the timing of any deal is unfortunately caught up in this. We had 18.1MM in the bank at year end which was enough for 12 months or so given the program, so a brave man might hold out in the belief that the market will pick up.
Now the markets..... Road shows are always planned before significant events like a well and we would all be complaining if the company were not doing all that they could to increase PVD's exposure in the market place. After all, this is the usual practice and is the catalyst for the buildup in sp before drilling regardless of a company doing a raise. Everyone including shareholders want to see this so it gives them an opportunity before the drill to sell. So greed is the enabler here on all fronts.
One can only assume that during the roadshow that some in the markets are still keen to invest and I would presume that this is because we are now weeks from spud. imo this shaped the timing of a raise and I am more than comfortable that it is in shareholders interests. As others pointed out, a decision to wait after the well puts too much at risk given the volatility that still exists and raising money after a less that successful oil discovery will be tough.
I think the shame here is that on offering, albeit modest, wasn't made to current holders to bolster loyalty.
Ive been in a number of stocks and seen this go both ways and the one thing that is common, when there is good money to be made retail investors, sophisticated investors and insto's all behave the same way to do what is best for their interests and loyalty is not on their radar.

Frustrating but lets get this raise out the way, see how much new blood comes in and get on with it. Having 12 months of funding in this game is nothing as most in the market know, securing more is key. I'm in this for the big promise and uplift of the drilling as this will be multiples of the pre-well build up so to see the funding crunch dealt with is a bit of a relief for me. I share the frustration with the dilution but I think this will be minimal and likely to retrace quickly as the new get in for the bang. Proof I guess will be to see how successful the raise is ?  

Regards