This is Mr Lincoln Augustus, first second cousin of Holymagiman
I have been reading all the fine postings for the last few days with some bemusement. Scenes of death and destruction, calls for the tumbrill for Mr Casey, etc. We were looking forward to a jolly good spectacle, perhaps enshrouded in some firewoeks.
But then again, I pondered whether this was mass hysteria, such as afflicts some schoolgirls during a dreary assembly in a hoy airless hall. For mass hysteria it seemed, and mass hysteria it was.
Lets look at the facts.
1. The company has a lot of potential.
2. The company needs money to prove up the potential.
3. A company with potential butno money is a goner
4. Shareholders moan that they did not get a bite at the cherry at 55cts.
5. Same shareholders could have bought the shares at 55 cts umpteen times over 2 weeks ago, but did not
6.Doing a placement is messy, expensive and time consuming.
7.The very shareholders who are moaning their bad luck and ill fortune would not have put forward the money if the DOW had tanked and ESG was sitting at 50 cts by the time the placement was due
8. That would have meant that the company would not have got all the money, as only $30 million was under-written
9. The placement was heavily over-subscribed, and that shows confidence.
10. The company states: It is anticipated that the proceeds from the Offer will provide sufficient funding for all planned operation and exploration commitments for the next 12 months �� The Offer will provide eligible institutional investors with a unique opportunity to invest before the completion of multi-lateral pilot production wells, the purpose of which is to demonstrate commercial gas flow rates and, in turn, support a material increase in independently certified 2P gas reserves and a transition to full-scale gas production.
12. This ties in nicely with inclusion of the company into the ASX200, and stimulates institutional interest
12. I think that it is better to become a bit more level headed and read the news that is presented, rather than to get upset over a good move.
13. I shall stick my neck out and venture that the share price will be in the 90s within 6 weeks, when the Moree drill results become available. Those waiting for 60 cents have a long wait.
Blessing of the Lord, especially to those who feel most hard done by. MLA
ESG Price at posting:
66.5¢ Sentiment: Buy Disclosure: Held
