When it come down to it, given there is no coupon, it really is...

When it come down to it, given there is no coupon, it really is just a blank check to issue shares and access equity capital as the company sees fit. The zero coupon convertibles make it sound a better deal than it actually is. The first 3 traches will be issued to pay for drilling that should already be underway and for which shares have been previously issued.
One upside is that they don;t have to exercise the 2nd $10million. This might be good if they get some spectacular flow rates after dewatering (which should already have be done and paid for) and the share price skyrockets...in that case a normal equity raising might be the best way to go (say via a SPP to shareholders).

What's everyone else's take on this?