Reality4 Apr 2021 22:55
JackPack-
Oilex have had no issue in issuing shares in the past taking on £250k here and £250k there whilst issuing millions of shares, just to keep the lights on.
They are in a much better place now with 100% of cambay, but also will now carry 100% of the risk, some will argue they have been for an age with the unpaid cash calls and other settlements due.
The current shares in issue is irrelevant to a company making a placing, just take a look at UKOG as one eg.
Bottom line is they require 2.2m dollar's for an acquisition that they don't currently have (RNS fact). They will need around 4m dollars for two wells to prove up commercial (previous RNS as advised by Gordon) They have circa £100k in the account.....
I am just trying to keep it real here, their is a lot of gas that is proven, commercial flow rates though on another hand?
I want to make a return on my investments like everyone else but all this talk of their will be no placing needs to stop, their is no guarantee. Oil & Gas is very high risk but high reward, to think financiers will give up a likely sum of 10m USD because of low interest and environment circumstances is nonsense.
As a final point even seasoned professionals are taking their shares off the table at .43 during Thursdays session, those folk are not daft it it going to be 0.5-0.7 or above by next week.
Happy Easter,
AJWG