re: Ann: AusTex Oil Announces $3.2m Placement... Notice that the...

re: Ann: AusTex Oil Announces $3.2m Placement... Notice that the capital raising is staggered ?

Notice that there is no mention of adding to their land portfolio ?

Notice that the way the investors have staggered it, it can only be used to drill oil wells ?

This guy Hung is a chartered accountant. I've worked with them. He is not going to throw good money after bad.

He knows that with 2 or 3 more wells, production gets to 350-400 boed at which level their exploration program of $4M per annum becomes self funding. Granted, not enough to fund horizontals.

But if they complete the 8 proposed wells at say 70 boed plus the 200 they have now, I have them on $8-$9M per annum.

What does your spreadsheet say ?

Or haven't you modelled it ?

I'll bet Hung has done his homework.