No argument at all as I'm done with that and think you now understand my anger. Whilst I have cast many opinions and possibilities, bar the odd confusion/mistake of things they have thrown up, I have always tried to post/paste facts and the possibility I see arising from those. I digress, back to Ron, whilst I have come to loath the man, even though I feel he is script written for the real controllers, in his defence. He never makes anything clear. and I think cash neutral he was referring to oilex as a whole. Cash positive in india I think was his point thus india funding the whole shebang, advisors, outside staff, offices and subsidiaries etc etc
with hindsight adams, whoever and for whatever reason the extra 10% resolution was removed, I would say it was a solid bet that the SPP was it's replacement, OEX still raised cash that was required at that point. The most glaring aspect of the SPP vs an extra 10% placing was the fact that the SPP had to be trumpeted around well in advance, which we all saw the resultant effect that had on the SP, and the unmitigated disaster it was lol.
I do agree with your last point about the options level and confidence. Something has to give here one way or another.
Do you also remember they withdrew a resolution from agm for request of further 10% dilution/placing . Now why did they do that? were they confident of blagging with the spp and hence less dilution at a higher sp and more funds. Or do they truly wnt to have to sell something to somebody, as placing exhausted or at insufficient sp to raise diddly squat. On the other hand, as I mentioned the other day, in these volumes and circumstances of approach cash neutral (so they say) then the a team and the underwriters could roast this past the next options level with a small portion of their wealth committed to it. Not to mention it would show confidence to other investors
adams not here for a fight, but this is one of my gripes about the last 2 announcements
you just said - but its the gas situation that is key and at least we are or should also be in a break even or profit situation at cambay
I'm not convinced that is an accurate statement,
as i pointed out previously the presentation has the caveat "excluding Cambay capex", then Ron in the video went from cash neutral to cash positive without clarifying this point.
from my POV, OEX will be cash neutral on Bhandut, cash generative from Cambay, but will still have the capex to cover on top, so therefore technically not cash neutral/positive, but at least revenues will be coming in.
They issued just short of 61mln shares so the placement was just short of 10%. they could take another 5% . Without looking into all the rules again I'm not sure where they stand with further dilution. My view is a 10% psc for the cost of one of the drills, that would still leave oilex with 35% of cambay, bhandut and canning. Being that the original psc deal was for us$4 million when there was no 77, no gas sales endorsed I would assume that it is now worth far in excess of that, yes poo down but its the gas situation that is key and at least we are or should also be in a break even or profit situation at cambay. Should they do a psc then perhaps we may see some of that shareholder value after all. I just have the strangest feeling though we are going to have somebody else get that value on the cheap first.
adams, I'm the same lol but from my posts in Nov/Dec I was talking about the placing being upto 15%, yes it would appear the SPP was a different entity.
Even so, 15% of not a lot is even less lol, I can't see what OEX could achieve with a mere AUS$4m if fully placed at these prices, I certainly couldn't see it being enough cash for the rest of the year and they wouldn't be able to place anything else.
Do you know what, I cant even remember the factual answer to that, but from memory I think they can still go 15% as the spp was a different entity and was permitted to 30%. I cant remember all detail, but I do remember that they did say they may place at the same price as spp once spp had been concluded. R.E options Don't take two much to those as we have these 10million babies sitting waiting don't forget
The underwriters will each charge the Company a management fee of $25,000 on completion of the Plan plus an amount equivalent to 6% of the gross amount raised from all sources in the Plan and any top up placement. Additionally, each of the underwriters will be issued with 5 million unlisted options exercisable at 10 cents with a 3 year expiry, for consideration of 0.00001 cents per option
Cussler, not sure if they used all 15% for the SPP but they certainly don't have a lot (if any) of the 15% left. Even if there is spare left to place, the amount it would raise would be pitiful. I think finance has to come from some other means.
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