The problem here is the company has now raised capital at...

The problem here is the company has now raised capital at 55cents to a strategic investor to pay off debt. This highlights two VERY important points:

1. The Board believes the stock is worth 55 cents per share as they have raised funds on this amount regardless of who the shares were placed with.

2. The funds raised have been used to pay off debt. Why do they need to pay off debt? Is there production and hedging issues which have forced this? Investors were of the frame of mind that cash flow was covering debt obligations, this may now not be the case.

My thoughts DYOR