There will be no 30 cents

20 cents? 30 cents? These sums are pretty paltry once DOC is confirmed, and this beast of an oil play is revealed. 30 cent would value our alluring share of this hydrocarbon heaven at a measly $800 million US, which is a pittance to some of the giant oilers that may want a stake in this forever expanding basin offshore Senegal, and West Africa is in general, very much in focus to the future of the oil and gas sector.

In saying this, our time frame must remain short. The current 3 wells and a freebie, and then the optional 3 wells to follow, would possibly unveil enough to firm up some very substantial numbers, and leave plenty of blue sky to bargain with. I say short, because the longer we stay on board the greater the dilution, but I would love to see another forty or fifty raised to see these seven wells through.

Having seen no sign of more money required as of yet, management must be very confident in achieving the desired results to raise capital at a potentially much higher SP. This would be the greatest news of all to current shareholders.

With the oil price rising so is the Aussie dollar, in turn it balances out the value of the company, so little to be gained here in our overall value as all potential suitors will acquire in the US currency, bar the fact the sentiment in the resource sector is on the mend and we have already seen some sharp rises in value right across the board. This I feel will outweigh the rising of the Aussie, and deliver much greater value, and reduce the cost of future drilling.

Back to the beginning, There will be no 30 cents. Depending on the positivity of future results, no less than 1.5 billion US will touch this ( 56 cents to FAR). If the action really starts heating up, lets add another billion (84 cents). Not to far to the dollar now. These numbers are exempt of dilution of course, and will be pulled back considerably every time we have the need for more capital. A prime and possibly realistic number to raise in the near future could be around the 15 cent level, especially with a DOC in hand. 300 million shares maximum(45 million Aus), should pave the way for the final 3, specifically if testing is not required.

The greatest positive seen through this appraisal programme is the holding back of a CR, currently the timing would not allow this to occur. One gets the feeling the board have a very important card tucked up in that sleeve.

Happy days ahead!!!