WGO has around $6 million cash.
Cash on 31 December 9,111k
Expected cash outflow for March quarter 2,955k
Even if they manage to spend only $1 million during the June quarter, this will leave $5 million to be spent for the second half. Clearly not enough for the well and other expenses.
May be they shouldn't have spent any money on the Spanish junk. Now they are planning to drill new wells there as well.
Potential solutions:
Pay the drilling company in shares
Issue shares to investors
Farm out
Pre sell gas
Borrow money
Delay the drilling till market conditions improve
STX + WGO = ENORMOUS, page-34
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