you have 2/3 weeks before the next RNS on the gas drill , if you think the drill will be useless and at 400m they had no idea what they would find then sell by all means . The last RNS showed a 12 fold increase already undergoing in H2 ( we were given H! revenues not H2 obviously ) so the $3.3m is already being beaten as well as being told that its going to get a lot better too.
We are also told about the fracking still ongoing . That alone doubles or was expected to double the $3.3ish m as the bopd that could be added are said to be "upto 300bopd" so I would be happy with 200 The Varang deal could start any day out of the blue and once we hit the end of the year possibly a bit into 2015 we are told about the CPR
Now what is totally forgotten here yet again is the RNS about #32 . look at the TCF resource . These wells being drilled are intentionally done to prove the resource , and #32 was a success , the cash and revenue are clearly a bonus as there are operational costs. But the big focus is on the balance sheet . I don't mind 1/2m quid equity fund raisings. What does it matter in light of the gigantic resources .
Its a bit like spending money adding an extension to your house that will add value , only here the multiple is far higher . 1.95m vs 9TCF and the rest ...
Look their EV is far in excess of the current market ( EV is a proxy for takeover bid in my book ) they have probably spent around $400m so that and the current market cap will be the minimum they may look for in case they can't see a faster way to achieve all the plans.
I wouldn't say "they are giving the shares away" but I agree im a bit miffed to see so many new shares added to the ones already in circulation :( That said and as usual with my glass half full, SN states the revenue from the issue of these new shares is to fund ongoing operations highlighted in recent RNS's. If the issue of these shares will help bring gas and oil wells online then it is a very small price to pay in the long term :) ATVB. VW
Yet more dilution, will it ever end the share price will struggle to stay above 1p unless they can come up with something positive. The price they have given these shares away for suggest to me they arent expecting the shares to rocket anytime soon. I wouldnt be committing more money to these shares long term as the company must be virtually on its knees Surely if they were expecting revenue to increase they wouldnt be giving shares away to raise money.
Or just new investors seeing an opportunity to get in at a good price? I am just wandering if there is more selling when those already in and not seen the RNS, decide to get out? Interesting end to the week coming up.
Given we are in an extremely difficult funding environment a discounted placing is to be expected and only represent 6.91% of the share capital. At least we know the monies are to be spent to start work on new wells at its Mtsare Khevi gas complex in Georgia. So it is investment funding - not a bail out fund (re London Mining). I brought in at the low end in July so I still read 15% profit. With FRR positive outlook I see no reason for me to sell (yet) so I am holding long.
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