The previous Cap Raising covered the cost of drilling two Cooper...

The previous Cap Raising covered the cost of drilling two Cooper Basin wells.

If the company was confident of finding oil or gas then this CR is probably premature.

If both drills come up dry then it is doubtful they could entice another successful CR to do more drilling, and hence be in a financially sick situation.

Doing a MEO as someone mentioned in an earlier post, gives them an insurance bank, pays their salaries until they either run out of options, or try another CR sometime in the future when all is forgiven and punters are prepared to put their hands back into their pockets.

MEO came up dry, the SP fell 80% but MEO remains to fight another day and is slowly doing Lazarus. We haven't long to wait to see what Strike does.

One thing is for sure all those ST traders hoping to make a buck on the pre drilling SP rise won't be smiling now.