I think it is worth buying was more happy to buy at 0.006 and...

I think it is worth buying was more happy to buy at 0.006 and 0.007 lol.

I wouldn't be surprised if this announcement or a really positive additional announcement will be followed by a largish capital raising so there will have to be some dilution imo.

The main reason is even with the LOI for 20% and funding from PNOC and I believe the 52% SGC has in Cadlao will be diluted accordingly by Blue Sky resources farmin it should be fairly easy to calculate what the amount is SGC needs to raise themselves. Look can take into account what they spent on drill rods and minus that off but there will be a delta.

And if they stated PNOC may fund up to $13m they will need that amount for future drilling plans on success as well set aside.

There's is an option I guess to either sell some of the Canadian assets or Sacramento basin assets but I guess they could also take out a standby credit agreement offset against future production. I know normally that would be undesirable but imo that would be the best option let's say they need $5-10m over the next year of drill campaign they know they are making $1m per quarter or so from Canada so they won't actually need to use all that loan facility but it would prove they have the capacity to fund their share from cashflow and or debt funding against future existing production.

Once Cadlao and Nandino come into production they won't need the loan facility at all imo but Iboesky is correct in a way they can either dilute the share price to hell and dilute their own shareholding or find some innovative loan to cashflow / equity agreement with their current assets and utilise as much from cashflow and as little form debt as possible. Let's see how they go.

I'd say go time would be around the July Quarterly report announcement for finance 31st July they asking for PNOC to stump up and you can't drill off Phillipines in December in typhoon season well it would be a bloody big call to do that and could blow expenses out water if typhoon hits whilst they drilling.

Hopefully they are trying as hard as possible to not dilute existing shareholders including themselves in the next couple of months fingers crossed