I remain hopeful that something can be worked out with the OA's although I don't own many of them.
The capital injection that will come with the exercise of the options (circa $5.05m) will allow the funding for the pipeline (with the current available cash) and substantially de-risk the project. This will provide positive winds for the business and share price.
The difficulty as of now, is the timeline. They need ASX approval, which I'm told has some precedence, and shareholder approval. Unfortunately, shareholder approval will require a meeting and the time line for the Notice of meeting (28 plus 3 days) and the meeting means this will be very tight by April 15, which is currently the final date for the exercise of the options. I believe that shareholder approval will be a given, as shareholders, in the main, are the beneficiaries of the extension and the capital injection.
It is just that we need a decision on the options from ASX and in my experience, they are not the most timely business to work with, particularly if it something out of the ordinary.
I am hopeful that this extension can be worked out in time, but I think it remains an even money bet.
On the other hand, the extension will not be needed if we can get some good news from the project. This could come in the form of a gas sales option or agreement, or further flow rates after the initial flows, or the release of the reserves report, or something from left field, (call it a white swan event). Any way I view this, I can see positives, given the current gas market predicament, but our tight financial position is clouding the picture at present.
GLTAH
AL
RLE Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
