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Around 100,000,000 shares at these prices, to finish the drill. I don’t think so. He will finish the drill with the absolute minimum to get to the next stage. After hopefully stating commercial gas finds having tested MOU1 and 2, more financial options will be available to move forward.
They may well hit that button but after they announce a commercial discovery following MOU1/2 testing complete. Would not make financial sense to raise that much now at the current share price to save a few months.
If they can get 1 and 2 done and tested for little or no raise and it’s positive, worst case is a placing at a much higher rate for MOU A and any overheads for the CNG to get started. In the case of good flow rates from 1 and 2 more finance options will be available than standard placings.
My mistake . So testing could start relatively soon then. With MOU2 looking to re enter in the next 4-6 weeks would he be looking to time it that MOU1 finishes testing as MOU2 completes so they do the both in the one visit as per the original plan to keep costs down?
PG said he’s waiting on quotes to cost the remaining drill and testing of MOU1 and 2. There may be a raise. Also until solution is found or/and testing booked for the testing at MOU1 there’s unlikely to be any big volume in either direction. Should know more in a couple of weeks.
HighlandMatt, CEO’s job to plan for contingencies and that includes financial ones. Given you dont know what’s down there until the drill bit turns there should have been head room without diluting us to oblivion for 250m of worth of different mud they wasn’t expecting.
Jimmy has hit the nail on the head. Generate a cash flow and PG can drill as much as he wants.
If our licenses are are anywhere near as big as GRH is saying, how long will PRD hold the licenses? This could be proved right long after PRD have moved on.
All starts with successful MOU1 testing, MOU2 drilling and testing. Assuming successful I think they’d want MOU3 drilled before any cash flow from 1 and 2.
Looking forward to some more clarity tomorrow.
If we are not raising at this level then it doesn’t matter as just waiting another couple of months for the results.
Working that hard on BB’s trying to make percentage gains every day must be exhausting, but if it’s your job maybe not.
Hello AGD62, I was responding to Porters post.
I was thinking if they find commercial gas at MOU1/2 there would be other funding options for further wells. Certainly wouldn’t place at these levels for anything forward planned.
Logically for me, after testing 1 and 2 the next thing to mention would be the gas sales mentioned in previous RNS but he didn’t and talked about MOU3 which I think has invited the question from Porters.
As CEO it’s his job to have financial contingencies for what happened. You really don’t want to go to the market for money when you need it having reacted to something. You’re raising off a drop from the initial news.
I was surprised when he mentioned MOU3. They could encounter the same problems and don’t have a solution to this one yet.
Clearly they need to get MOU2 to TD and if it’s a raise so be it. Would show poor financial planning though.
I know people are saying we have money but arranging the investor presentation in the middle of all this rings the alarm bells.
They should have raised enough for financial contingencies related to this drill and testing of MoU1 and MoU2. They may well have done. We’ll know by Friday latest I’d imagine.
It would matter if it was done now at a much lower price because of the unnecessary dilutive nature of it.
If’s and buts at the moment though.
I’m sure someone will ask a funding question on Wednesday. He could have specifically ruled it out for anything related to the current drill this morning. MOU3 always needed funding but unlikely to raise for that now at todays price.
The market is pricing one in. PG has a history of poorly timed and priced ones. It just wouldn’t surprise me. No cost near term might not mean no cost month -6 weeks.
That being said I added some Friday. I’ve not been in as long as yourself but won’t sell before the results as been here long enough to wait a little longer.
Even if a raise a positive find will blow 5p out of the water. No commercial find and it’s worth little raise or not. That was the case before the delay, so PG is quite right in that respect. Nothing has really changed, other than the seal being a good thing.
The selling might stop but people may wait on the sidelines until what is said Wednesday.
It dropped so much because of a possible raise imo. They didn’t directly ask him if it was fully funded. Yes he says nothing changed but he also said whatever it takes to get done. Mentioned MoU3 which definitely needs funding. Had previously mentioned contracts on results of MOU1 and 2 after this drill and testing but nothing on that today, maybe more or Wednesday.
Could do anything tomorrow.