So, selling now for 1.9c does not seem, to have much appetite...for now..
In the scheme of what we are about and what we are embarking on , this raise is not over negative for long term shareholders..
The dilution is minimal and what it allows is the company has the required ammo to enter a number of avenues in a reasonable position of strength. Any cash component / back costs in a block 9 deal would not Likely be received until well into Q1 May be even Q2 ... we have been Told clearly what we will know very soon regarding partnering in Cuba is only the outline framework Agreement, it will not be the fully signed off deal, that will take a few months longer...
Sellers selling today at 1.9c hoping to get back lower may be wrong this time.....I think as one poster alluded we have a firm floor in place now of 1.8c , even if it gets there... however this is only if the positive announcements flow as alluded by company.
I knew the terms of the raise very soon after it was announced as I was sent a fact sheet. For disclosure, I did not partake as I felt my position is high enough .
Look out for Santa Cruz, this could really be a game changer on top of all our other potential ones..
market has no idea what this could potentially mean.. it could however mean first income for May on a regular monthly basis by way of means of agreed payment to May per barrel of oil over and above an in place low production base rate in the field .
They will advise what needs to be done, where it needs to be done and how it needs to be done...
If the model is successful, Cupet may well look at implemtning this in other fields they are currently running pretty abysmally.
These fields are so low on tech and cutting edge western well and reservoir planning , I feel it will not be hard to increase production from them..
Also a block 9 partnership with the Chinese( which I firmly think it is) is the optimum security blanket for Melbana shareholders for the sovereign risk element of our block 9 play which I acknowledge some are edgy about....
Now get the placing over with , let’s all move on and let’s start seeing what we actually are going to be doing over the next year !
