Certain posters quite clearly post here with a questionable agenda.Were one so confident of their investment,why bother,unless one has an entirely different agenda.With the SP always testing new lows,fact,how long before this company is delisted?july?
guess they never thought they would be able to buy a large tranche of shares at a discount to the market price. One thing for certain is that TOSCA doesn't care about the small shareholders. I can understand why TOSCA are buying but what puzzles me why the other buyers are, maybe they believe the published net asset or are just going to follow TOSCA to share out the carcase at a rock bottom prices, don't know so only MO.
The company plans to raise 29 mill, the placing will cost 1 mill, from the plan above they intend to spend 27mill, may not spend the full 4 mill for Rawicz but drilling costs normally overrun so lets leave the figure at 27 mill. That leaves the company 1 mill for the overhead since the beginning of the year until cash flow in 2016 IF it will be towards the end of the year, of course u have to ignore the 13mill plus for Avobone. If it all looks familiar, it is, remember the Turkey deal where the cash raised for drilling was simply diverted to pay the overhead.
The Company intends to use the net proceeds from the Placing as follows: l To provide any capital requirements to target cash flow from the Rawicz and Siekierki fields. Given that the next well on Rawicz will be at no up-front cost to the Company, and activity on the first three Siekierki wells is fully carried, such net capital requirement is likely to be £2 to 4 million, with cash flow from production expected to begin in 2016. The intention is to secure project finance to cover most, or all, of these costs, so funds will be a back-up to such financing. l To drill some of the most promising prospects that the Company has generated over the past five years, including an onshore Tertiary play on the Tarfaya licence in Morocco (approximately £3 million), and a well on the Durresi block in Albania (where the offshore carbonate target will be accessed by directional drilling from an onshore location, approximately £5 million). Both wells are expected to be drilled in 2015. l To provide general working capital, including licence maintenance and technical evaluations together with discharging creditors. l To apply the balance of net Placing proceeds of up to £15 million to funding the Company’s share of farmed-out projects should there be any such costs, as well as to target any low-risk acquisition opportunities in the current market climate.
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