funding

Hi SGY followers. I, like some others of late, have broken a rule of sorts and averaged down. Am now feeling some pain from the continued drop in price. While I suspect this is short term, it has made me look more closely at the company before throwing additional my hard earned cash its way. The main question on my mind at the moment is will they seek to raise more cash prior to the next drilling program and what impact could this have on the share price?

The last quarterly report shows the company burnt through -$600,000 after a credit was received for sold equipment (+$122,000). The December quarter is unlikely, in my view, to contain much of the cost of the recent exploration well (in the order of -$500,000). Add to this the current quarter's costs and I'm starting to wonder how far the remaining $1.5 million will go, particularly if they decide to drill another well? (e.g another -$500,000 perhaps?).

While the pressure is not on just yet, time is ticking and the longer they take to progress things, the faster the remaining cash will be eaten away by administration costs (-$400,000 last quarter) rather than potential value adding drilling. I look forward to some direction from the company soon and believe that the latest drilling has added value and should have seen better support.

So I guess I am in a bind on what to do. I like the current investment proposition and the notion this could be an undiscovered gem, but would also participate in a discounted capital raising if the opportunity came along as I have quite a few shares and could just sit on the cash in the meantime. Simply my novice views above and I would appreciate other holder's/watchers views on SGY's funding adequacy to see another well through.