management have been quite solid imv through the past 12 months of uncertainty. a few quibbles along the way but they got paradox3 well planned, drilled and on the verge of production testing all within acceptable timelines and with a minimum of fuss. they now have a drill team they can rely on and that business relationship will stand them in good stead going forward
management has raised capital in a difficult environment through a mixture of debt funding and strategic placements, and they sold iron ore asset for $3m plus a 2% royalty to come down the track. (wonder what they plan to do with the gold projects, might be a good time to off them as well?)
in a month or two gdn could well find itself with two wells (p1,p3)producing between 6-12 mmcd -- do the maths, even with the low figure that's not bad if it happens -- They still will also have enough cash to re-enter P2 to sodetrack into the producing gas or even go deeper and test the leadville target. Dunno about anyone else, but I'd like to know where the source rock is for all this gas they are finding over the eagle prospect.
If all that happens the oppies come into play. One director will definitely want their million or so in the money at .20 come july ... and failing that there is a huge incentive to get the ords price over .12 come november 31.
Sure, it will bring dilution, but gdn with gas all over the eagle prospect can certainly have a field day punching holes if they get $46million in the backdoor. That would leave 825m shares on issue (fully diluted), so share price of .20 would represent a marketcap of $165million (with a good para3 flow this is quite possible relative to peers) with $46 million of that in cash.
Pretty compelling stuff if it all came together. thoughts?
GDN Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
