RE: Rather large delayed trade today - worked know doubt24 Jul 2025 21:29
Let's take a look at the CEOs statement for the capital raise:
"This capital raise will allow us to execute several exciting and potentially cash generative workstreams that have the possibility of adding to our production revenue in the short term. In the event of success in the well testing programme, Heron-2, Gazelle-1 and Gobi Bear 1 can all be brought on stream through our existing production facilities and the planned operations will utilise the same small work-over rig sequentially in a cost effective manner"
1. Exciting and potentially cash generative? How is it exciting when those wells have previously been announced duds? Do they have new revised data to prove that it's exciting? Because if the COS hasn't been upped, and there is lack of evidence to suggest a positive outcome otherwise, then how is it exciting?
2. In the event of success? Those are very strong words...any chance they can professionally advise the COS? Of course not!!! They either don't have the data or the COS are so low they don't want to announce it.
3. Cash generative work streams....adding to production revenue...these are all buzzwords investors like to hear. However, realistically speaking, what are the chances of success and how much potential oil, or revenue are they targeting? The lack of data and numbers are not so convincing....you would have thought they have issues a revised report by now?
4. Cost effective manner? They labelled this operation a cost effective manner to justify the re-entry? If it was cost effective then they would have saved more money on the first drill attempt.
I thought they have also spent funds on surveying work and seismic data to determine the location of the oil zones?
All in all, there is little justification and lack of new data that suggests a re-entry would greatly enhance the chances of finding commercial oil. The fact there is no number provided says it all except for "it's an exciting opportunity."
Imho and DYOR
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