Hold Sell or Buy, page-26

Cap raise for what? They've just refinanced their debt.

The difference between this stock and other small cap oilers is the lack of drilling. One last vertical hole in NZ growth program then its a long wait to a potential China well. PNG is now in a holding pattern pending return to higher oil prices or a deal to develop a 4th LNG train from P'nang.

The hedging and US$60 oil should get them over the line to pay out the conv notes but until that time, there aren't many other factors that are going to rerate the stock. They just need to produce oil and put the cash in the bank for 12 months. I'd like to see them reduce their overheads by reducing fat cat directors and management numbers / wages.