The rights or entitlement issue is for current shareholders,...

The rights or entitlement issue is for current shareholders, that said the sell off after the announcement in my mind is an over reaction and shareholders should weigh up a few points before deciding whether to take up the offer.
Clearly Directors have given holders the opportunity to take up shares the same that was offered to the previous sophisticated investors, so either take them up or give them a miss.
The issue is not underwritten and I think has a min subscription of $1m, so if they only raise a million it's money in the bank and the dilution will not be very large.
Then when some results come in we should see a rise, then the holders who did not take up the offer should not have any right to complain.
Lots of drilling been completed, when should we see the results? I would take a guess and say sometime after the issue has been closed.
My views only.