I was rather surprised to get home from work this evening only to discover GDN has pushed forward. Good to see. Some reasonable volume as well.
Consolidation of the heads moving forward is an even better setup for GDNOA.
I have only one concern and its not the flowrates nore that we don't have a gasfield. IMO, both are a given.
They have multiple chances to get good flowrates. I don't accept that all of them will be too low for commercialisation.
My only concern is that Management may do a CR straight after the announcement of the flowrates. Plenty of companies have done just that after releasing excellent news only to find that the upward movement of the price suddenly stalls because of a drawnout capital raising exercise. I hope i am completely wrong.
I know most here would probably say "They don't need a CR yet as they have plenty of cash."
Alot really depends on their next move which i am sure they have well and truely planned.
IMO, the most important thing is for GDN to step up to the plate as a producer. Get this right then they can CR all they like for all i care and go ballistic on the next 40 odd wells. Placements i can handle. But not CR which can often end up sucking the shareholders dry.
By rights the funding issue should take care of itself if they play their cards right and we move into production. Plenty of backers.
That is what i wan't to see.
Cheers markco2
GDN Price at posting:
11.4¢ Sentiment: Hold Disclosure: Held
