In my view the placement money gives MAY two things: - Protection and - Progress Re progress: - MAY can now commit to putting money into production, either from upper sheet or one of the other intercepts, and can make arrangements with Solangol re next phases of work on the permit knowing that MAY can fund it. And also there is Protection: - the current well is deep, in fractured rock and in a pressurised environment (we have had plenty of evidence for this) and, what none of us want to happen or would like to even hear, the bit might get stuck; consequences would be that equipment is lost and some other damaged, we don't get to full depth, we don't get logging of 4 potentially productive zones, we don't get flow testing of some of those, and we won't have a residual well that may be put into production - this is a real risk (that is being carefully managed to be sure). The consequence of that risk is that $$ wasted and sp tanks somewhat, and we need to find more money. But MAY is now protected against that risk!! Bloody marvellous work by the management! PS we will know in a couple of weeks if that risk is passed, and , if so, then the money can be committed to progress (but progress planning can start now)
(20min delay)