RE: Placing29 Mar 2023 11:29
The ongoing saga of will Mosman raise and dilute, this has aways been their Modus Operandi. Great RNS followed by a share raise at record low and warrants which are largely never allowed to be exercised before further share price dilution.
Could this time just be different?
Well, the share price has been held back again. No momentum, and staying near to lows why? Depressed market, end of ISA tax year, historical sentiment, the market needs to see a signed deal and proof of oil production.
Both could be confirmed by the of April.
Seismic funding is the region of 1 to 1.5$ million, but surely with a number of suitors this cost would be included in negotiation of any prospective farm in arrangements, so I believe the need for funds for seismics can be discounted.
Next Cinnabar drill is quoted at 1.5$ dollars cost to Mosman. Will they need to raise?
Monecor has gone leaving only SP Angel sole Nomad and sole broker, could raise but have not previously for Mosman.
Raising now goes against everything said in yesterday’s RNS about raising shareholder value, so surely they would not say one thing and do the other (yes have previously) but surely not now.
Market conditions are very tough to raise and terms not favourable. Any raise would be suicidal.
At the end of December funds stood at 996$, Jan and Feb income combined based on 68 BOPED (payment 60 days in arrears) would be in the region of $250k, with monthly income there after in the region of $300k before costs.
Infrastructure upgrades were being carried out at Cinnabar – estimate $200k pure guess. So, from December current funds, monthly income now in the region $300k, potential cash injection from EP145 farm-in. Increase in share price due to huge news flow due in April and warrants could be exercisable meaning access to more than £1 million.
Unlocking shareholder value is not raising at these levels so on balance I hope and trust no raise will happen.
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