Schmick, I don't know how to excercise the options early, but would not if I could. Unless you need the money soon, the options limit your downside to 3.3c per security. To keep an equal position in the FPOs, your outlay would be much larger, with a theoretical downside (highly unlikely) of 12c per security.
I know this rationale does not work if you are thinking in absolute terms of investing $xxx in the company, but if it is position you are after, the options are not so bad, and are likely to expire in the money, despite what I would perceive to be GRKs weak business position and even weaker financial position.
Diversification towards geothermal distillation is a crucial step for Australia, and having the ability to get an operation up and running quickly should provide significant SP increases if management ever declare their intent to pursue the target more actively.
Before I make a decision about buying or selling more GRK/OA, it would be excellent to see what data GRK have regarding the Cooper Basin conventional targets. Old log data and sediment interpretation could demonstrate a highly viable resource in the same style as UROs high quality LC conventional project. Through this project, there will also be the opportunity to piggyback onto GDYs proposed transmission infrastructure, presenting GRK with a small scale cash cow to develop further projects.
GRK Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
