Been away...but it is an interesting announcement.My instant...

Been away...but it is an interesting announcement.

My instant reaction is that RJ and co are raising cash to ensure the exhorbitant wages and adminstration fees can be paid for another couple of years. Given the rate of cash burn, they would need to raise cash cash next year if they want to maintain a buffer (i.e. companies should never let cash get too low or the share price begins falling rapidly in anticipation of a dilution). At least this was at a good price and unanticipated.

Although I think management self interest in the primary motivator here, there is some upside. With a few more million in the bank, plus BPTs investment soon, they should have enough cash to drill a couple of shale wells. I am sure this is on RJ's radar. Once BPT wrap up there holes, Icon would be keen to prove up their own shale tenements, especially while some hype is about.

So, although I hate the idea of RJ getting overpaid a while longer and little fiscal discipline being shown by management in general, I think getting some cash to drill some shale holes might be a good strategy, and well timed if they can arrange it early next year.