General chit chat thread., page-3579

$100M to get to producing seems a bit low in my opinion - you could barely drill 5 horizontals for that and I think a minimum viable project would require at least 10 wells or so to get enough volume out to justify the capex.

Can you stop banging on about the same thing now? Yes of course it’s going to be costly, of course it’s going to take years to get to production. EXR and OMA are no different to that. If TriStar fold out $100M to fund wells for OMA this will dilute OMA the exact same way as a CR for EXR. It would slash the value of an OMA share in half too.

And your point about EXR being mainly retail holders with weak hands - I agree, that is a weakness. That said, your follow up argument assumes that every raise has to be offered to existing shareholders too, which is not the case. EXR can open up a strategic placement for specific interested parties to raise capital or they farm the Grandis project out, in which case we will see the partner drill DD-3 and we won’t need to spend cash on the next stages.

One way or another, dilution is always part of the story for pre-revenue companies. Either you dilute at company level or at project level.