If the calvalley deal completes they receive back costs.
If phase 1 completes they start to generate cash.
If TE-4 is succcessful the SP rises significantly and they can raise cash from equity if required.
Lots of “ifs” but at least there is a plan.
It is for all these reasons that the SP is where it is and the MCAP is £18m.
If there was no risk there would be no potential upside. Sound is definitely high risk - high reward now, but I wouldn’t be crystallising losses at this price though (although it is better than nothing).
If the Calvalley deal gets completed (it is concerning how long it is dragging) then most of the risk disappears. Then any success with the drill bit and it will be transformational.
I don’t think the size of the well is the key aspect. It is proof of concept.
There hasn’t been much (any 🙈) success since TE-7, so a successful re-drill of TE-4 is increasing important for shareholders. TE-6 was a re-drill of TE-5 and that went pretty well👌🏼.
A successful re drill will be transformational in my opinion.
Has anyone been in touch with the company recently? I appreciate they won’t be able to share much……if anything, but we have not heard anything significant in what feels like months.
Exclusivity period with Calvalley expired in August. Meetings in country apparently went well.
I’m sure I remember mention of 2 key pieces of news expected in autumn………now winter.
Gotta be due something shortly.