Thought I might change the topic somewhat and look ahead at outcomes.
Setting aside the obvious if we don't strike oil and based on the following assumptions:
Cash at hand $5m
We have a commercial find - depths and flows can be speculated on
The initial SP stabilises at say a conservative 0.25. and....
We need future financing which seems to be a thread within the '50 Bagger' thread speculating whether we get farmin, taken out, external finance, CR, JV etc etc
I was wondering that given the above - the options would be in the money and I would expect that all rights would be taken and would this not provide the company, by my calculation, an additional $10.5m cash with some dilution.
My preference would be for the company to get external financing say a credit line of $50m (or more) given there is a viable, tangible asset and that current management takes this project on and sees it through to the end. After all I'm sure that Casey and cohort can't have too many projects left in them seeing that they have been around the block a few times.......aaaannnd there won't be too many more projects floating around like this
Schuepbach Energy International LLC (SEI) also has the ability to raise funds as well.
Just as an aside the Uruguayan Peso is at at the same exchange rate/ratio as the AUS/USD so how that factors in to the cost of doing business, wages etc etc should also be considered and taken into account.
I would be interested to hear others thoughts on which way is the most cost effective long term outlook.
I know there will be some that will want the quick profit and move on but I would like to see, for those who took the real risk and stuck with the company in the long term, maximise their return.
Cheers
BW
PRL Price at posting:
4.1¢ Sentiment: Buy Disclosure: Held
