Looking at Advance's last interim results, it's clear that they don't have a lot of cash on hand or substantial assets for that matter to demonstrate equity commitments to justify loan obligations if they finance through a bank. Private sector support I feel will be needed to try and get the funds they need for a buy in. Happy for CVN to fund any of the capital that Advance can't raise as I believe Buffalo is a no brainer (the well was literally abandoned whilst it was still producing thousands of barrels of oil a day!) As long as Advance can get the 10 million minimum requirement we will see some moment in the share price in a northerly direction as the drill will be proceeding.
Adrian and the team are smart and must have confidence about Advances ability to raise the minimum 10 million required but not so much about the 20 million which is why they structured the agreement the way they did. CVN can cover the shortfall and at the same time progress the drill, which I hope is the outcome as CVN can retain more % ownership in Buffalo.
If Advance fail to raise the 10 million all CVN has lost is time and will need more time to find a more another suitable partner. Remember Buffalo was a previous producer so it's not a matter of "if they will find oil" its a matter of "how much they will find!"
https://www.londonstockexchange.com/news-article/ADV/interim-results/14839875
Looking at Advance's last interim results, it's clear that they...
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Last
19.5¢ |
Change
-0.005(2.50%) |
Mkt cap ! $348.8M | |||
| Open | High | Low | Value | Volume |
| 20.0¢ | 20.0¢ | 19.5¢ | $193.7K | 977.9K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 18 | 1493897 | 19.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 20.0¢ | 510753 | 14 |
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| Last trade - 16.10pm 11/07/2024 (20 minute delay) ? |
| CVN (ASX) Chart |