A Convertible Note (or debenture) would appear an easy option for INP financing as it carries a low coupon (interest) rate which, with the strength of the partners, namely Origin & AWE,should appeal to superannuation funds amongst others. This would overcome perceived difficulty associated with cash flow funding whilst giving INP additional funds to develop new opportunities on behalf of shareholders. KIK has effectively followed this path with their Tindalo development.
I believe that partners in producing fields get paid on a %age of shipment payments; perhaps others more knowledgeable could comment on thie...
With a new management team in place and a new direction for INP it is a totally reinvigorated company albeit with burnt shareholders with long memories like yourself; there is opportunity and risk trading in all oilers which is why spreading risk is so essential to save those nightmares you describe.
Of course, you could invest in the blue chip banks for safety...oops! I nearly forgot that my ANZ shares went south from $32 to $12 in 12 months - even without the world's biggest oilfield debacle. lol
INP Price at posting:
16.3¢ Sentiment: Buy Disclosure: Held
