This is a binary play - it has been completely stripped back and simplified as a corporate entity. Cash - drilling rig and 3 roustabouts. No need for any sophisticated fundamental analysis now to decipher what is going on.
Drill it, flow test, commercialise if successful - they may even be able to get in another round of drilling if this one fails.
They deserve the pay rise because they have kept the company alive, managed their portfolio and acreage, funded the drilling of 3 holes at 50% of the market price and have done a sweet deal to flow test them all together.
They still need the $40m they were looking for nearly 2 years ago, but they have recognised the changing market and POO moving $60 pb, MOVED ON and come again with another throw of the dice.
A lot of people, including HC itself recognising this, so well done boys!
Bravo!
AKK Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
