Remaining Cash2 Feb 2019 12:15
Any views on how much cash is left? ROSE had $2m at 30.6.18, but our admin costs are high and we have engaged a few third parties recently. At a guess I would say $0.75m left or about 3 months worth. imo they will need to raise soon regardless of whether they get a jv or not.
Looking at what has happened with AAOG I have seriously derisked 90% of my holding here and await the funding before I buy back in. Under the right management and with cash in the back pocket this will do very very well but without adequate working capital this will struggle. I see someone has been making a few big buys recently and I am suspicious if someone is trying to maintain the share price ready for a raise. Take over is possible and maybe the best option for us PI's to exit without a dilution. If we hit oil, another big raise is required to go into production, fund future wells and pay admin costs. Yes we can borrow but it takes time to set everything up. Just look at PXOG for example. Two big gas finds and the share price drops by 50%.
I will hold my remaining 10% regardless and hope this goes well, but until the funding is sorted I can see this going lower with a raise around 1.5p. So yes I think we will drill but as regards share price, I think this will not multibag in the current climate and may well go down.
I was way over exposed here and ROSE was basically my only investment. Stupid tactic. Now I am more diversified and happy with my holding here and hope it comes good, but if it fails it is not the end of the world.
Good luck all. We need it.
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