"Genuine attempt by BoD to limit dilution to shareholders" You must be new they diluted the hell out of this sometime ago, that's why some folk are probably still sitting on huge loses requiring above 50p to even break even. All aim companies need dilution helps with funding and that's more a lesson small holder's like us need to learn.
More Dilution? The credibility of SOU would tank! Plus, if the well was a failure we would have burnt all our bridges.
The money from Niche reduces our exposure, plus we got a pretty good deal - again, I am not too sure Niche is actually capable of holding up their end of the deal, but that is another topic of conversation.
How is that Nervesa drill permit coming along? See the RNS issued on the 8th of Jan 2014.
IF Niche were dragging their feet/having difficulty raising the funds, the deal could go on and on. IMO this would damage our credibility and share price. This is supposed to be our next drill, and a Badile farm out aside, this will be our next big share price driver (unless something comes out of the blue). I personally would prefer for us to go it a lone and get the drill done quickly. We have funding, a cos of 90% and we would have 100% of Nervesa, so much more cash for us. This farm out was arranged around the same time as the ce investment deal. We have the cash now. We have heard nothing about DD being completed...... IMO we will quickly find another partner or go it alone.
Probably get an RNS this week now saying farm out is complete!!
Crude - I do hope I haven't given the impression I work in the O&G industry - as that is certainly not the case, and the small amount of knowledge I do have was gleaned from my own research and from some very informative posters on here such as yourself. ATB
Goza, thanks for your kind comments. We have some good posters here, & a few that work in the industry, such as yourself & Appiamma. I totally share your enthusiasm. Can't wait for Badile..........it's getting closer.
Genuine attempt by BoD to limit dilution to shareholders holders, delivery of small marginal (low risk) assets building towards the bigger plays and adding much needed revenue to cover cost base is to be commended!
It's a lesson other AIM companies should have learned. Not sure of the upside from here though. Nervesa (II) looks priced in as an expected success. Still lots of time to get in before badile when it might drift. 12p is giving quite some resistance which it did this time last year.
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