If the PCL SP is 10 Cents after the first drill and for simplicity a second well will cost $100M all in
PCL's share of the cost would be 20% so $20M$20M at 10 cents per share means a CR of 200 million shares which is not even 5% of SOI (more like approx 2.5%)
PCL could do a 3rd well and we would still be around 5% of SOI's
If the CR was to include a decent option offer as well then it would be very sellable
This would barely impact on the SP and would potentially bring even more shareholders on board
My view is we should not be concerned about this, rather we hope PCL does take this path and retain 20% of the mega-monster
PCL Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
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