With all the chat about a capital raising I thought I might...

With all the chat about a capital raising I thought I might chime in following an interesting event this afternoon!

Further to Dexters email regarding the analogy with the Rockhopper discovery (copied below) please note that Rockhopper are now trying complete a capital raising through Canaccord UK to fund further development. This will be the second leg of the analogy with NGE!

I strongly believe that NGE will adopt a similar strategy i.e. they will wait for a discovery at Panakawa prior to an issue at a price that is a better reflection of the true value of what we have here i.e. much further north of current!!

Remember that the window for a raising is only open for three months post the AGM date (14th May). The same resolution was passed at the AGM last year. It is a sensible option to have in the back pocket!!
____________________________________________________________
Note from Canaccord UK this afternoon -

Good Morning

This morning Canaccord Genuity are raising 48.5mn for Rockhopper Exploration Plc wit the placing of 17,320,000 Ordinary new shares at 280p per share.

The placing is fully underwriten by Canaccord Genuity.

The reason for the placing is to flow test the Sea Lion exploration well and drill an exploration well on Ernest prospect. Additionally, Rockhopper will also spud and drill two exploration wells on two Desire owned prospects in which Rockhopper has a 7.5% interest.

Additionally, the Falkland Islands Government now requires the Company to hold as free contingent cash $4mn to suspend Sea Lion and $12mn to commence drilling operations on Ernest.
___________________________________________________________

Dexters previous note -

I hope NGE is a big a success story as Rockhopper.

Rockhopper made a 200 million barrel discovery offshore the Falkland islands. They have revised their P50 estimates to 242 million barrels. The share price has gone from 40 pence in Mid May to 319 pence (3.19 pounds). The company is now valued at 600 million pounds and are operating in a new frontier (First discovery offshore the Falkland Islands). No access to infrastructure, in disputes with Argentina (and the broader Latin America) over sovereignty of the islands and still the continue to climb.

Hoping NGEs chart looks like Rockhoppers over the next 2 months. Difference between the Sea Lion discovery and a "potential" Panakawa discovery is that Panaks is onshore (reduced costs), can be monetized short-term using the river system and we don't have sovereignty issues, with PNG government pledging full support to major developments.