EGO (ASX) More Positive

Originally posted by Allyoops2 ↑

I would also hope we get 25 million but even if we get only 20 million this would mean at the current SP the market values all acreage held plus bits and pieces at about 25 million.
I know we have to think of the precarious financial situation we are in but if EPW value their Perth basin holdings at 16.4 million now with around 18% of the Basin held would make EGOs approx 75% to be currently worth 68 million which at the current SP it patently is not.
we are therefor paying a fairly hefty premium if the proposal goes ahead at this price .
we then have to look at the repayment date and unless management have other irons in the fire (which I suspect they do) on present information I can see problems arising with the top up coming into play as if we drill 2 holes in the coming 12 months and with the money held being only sufficient for the planned drilling, admin and the unknown amount needed to ensure minimum work on tenements as this is crucial going forward. Should we be fortunate and the drill proves up more reserves imagine the gyration of the SP in this scenario and ego could be powerless to pay back the dept until Alcoa 2nd tranche appears around Oct
2015. Suppose SP hits 3-5 cents where are we going to get this money.
what we need is
A. Exceptionally positive Ann's prior to the commitment to go ahead hence SP increase.
B. Reduce the asking price to say 12 million with a maximum cap in place.

remember EPW will also benefit from the increase in SP with their (by then) 20 million share
I desperately want this to work but unless we get an unexpected bonanza from the sale of some Carnarvon basin tenements or some other happening from left field we could have more monetary problems in the future. Although I am concerned I also believe If anyone can sought out our current problems it will be the current leadership.
ally

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Allyoops2
They are going to drill a well in the first half if that proves up in that case the top up will not come into play with another well producing funds will come available .If the wells are duster we are stuffed any way.
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