RE: TIME FOR A CHANGE31 Mar 2022 12:49
Great post here from newtofo on Jan 29th. He seems to know his stuff! :-)
"Falcon could very easily have to contribute funds in 2022 towards the final costs of the two horizontals planned for the existing Amungee well pad. In the press release two days ago -- POQ stated: "Falcon remains "LARGELY" (circa 75%) carried for 2022, with the "balance" of costs being funded from existing resources".
This statement by POQ indicates that existing resources (approximately $8 - $9 million in Aussie dollars left in Falcon's bank balance) may be required once Origin has reached it's agreed JV limit of spending. Even though Origin will be drilling both 2 km horizontals on the existing Amungee well pad (which will help reduce the overall cost structure in 2022, but as Darnit will note -- still probably the most expensive in the Beetaloo ) -- it is worthwhile keeping in mind that the drilling and fracking expenses aren't the only funds that Origin is spending on this JV. All the ancillary costs at head office for data room work, assigned personnel, and overhead costs are added in to the mix of what Origin is spending in 2022 and will add $millions more to the overall budget.
I am hopeful that Falcon has enough in the bank to cover their 22.5% of the final tally for 2022, but I am also expecting to hear of a private placement or further dilution with a funding raise on the LSE sometime this year. There is the OORI to consider in May -- which will most likely get moved further out at a significant bonus to the ORRI holders, but if Falcon is not sold before 2023 -- then any Pilot Production plans will have to be funded to the tune of Falcon's 22.5 % -- which will be fairly significant."
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