Member Info for Jonmo91

MOU1 testing March, drilling MOU2 next step after that.
MO1 successful testing will provide more funding options.

You advocated £5 million raise at around 5p. I’ve only looked quickly but it looks like 5-6 % dilution for 88e.
Similar for PRD would be 20-25 million shares issued. £5million would have been nearer 100 million shares and around 25% dilution. That is not similar.

Calm down Joffrey

It was ok most of the day. I think they lost interest the last hour as a Friday afternoon when the volume dropped off.

Yes we are but you don’t raise money at this level unless you have to. If you have to you raise what you need. The time for planning for more than needed for headroom was in the planning up to the drill, not now.
The idea that you raise any amount now at any cost because the prize is could be worth it is not a sound argument in my opinion.
If he needs it he needs it, and I agree, get on with getting it, but at this level why would you do the biggest placing in the companies history of it’s not needed.

They are finishing the last 250 or so meters of a drill and a couple of tests away from having the ability to raise in a multitude of different ways and at the very least a much higher placing price.
The market, if he needs one, is going to bend him over. He will make it as painless as possible with the least amount possible at this stage to allow more options at the next stage.
There is no financial advisor on the planet advising to get £5million now on the information we’ve been given.

I’m not saying he won’t need a raise. I’m saying he is unlikely to do one for £5million at this price and also for that amount pre results.

I think it’s purely the funding weighing on it. Ironically even if a placing, with the uncertainty removed it should go back to pre drill. There may even be a decent run up to the final spud.
Time wise , if the rig is no cost for a couple of months he will be trying everything to get it done it that time.

If he dilutes around 25% to drill 250 meters or so with the drill already on site he’d be certifiable.

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.

Obliged

Has the q and a session been uploaded anywhere? Cheers

I’d be happy if he just said MOU1 and 2 commitments are covered.

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.

The single biggest thing weighing on the current share price is the funding question.
Should have addressed it in the RNS. Will clearly get asked later and if he avoids it again it will weigh even more.

Kasjnation, I am expecting MOU3 to be drilled before any gas sales come in from CNG.
We shall see.

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.