Hi guys.Still digesting the announcement however the 1c raising for a minnow like KOG came as no real surprise to me.In this current climate where all junior companies are going cap in hand to the market for funds,and given the abysmal SP performance since floating,it probably is about right.Any higher at this point in time would not attract any interest.As I have discussed earlier there are genuine reasons why KOG has fallen so far,the timing of the float(at almost the exact time the Global financial crisis hit),which not only saw investors leaving the junior end of the market in droves,but also the industrial use of Natural Gas in the U.S has been severely hit.Even for those of us who did'nt participate in the FPO the ride has not been a good one.All of this however flys in the face of the fact that KOG have been very successful in what they set out to do.Although this raising dilutes our holding greatly,KOG always had an unfeasibly small amount of shares on issue,and the low cap raising price gives us a chance to average down a fair bit while we wait for the discoveries to be commercialized.Dont forget KOG is now a producer,not just an explorer,and industrial and domestic gas usage in the U.S is now rising,and the price is going up,as a disconnect from the oil price.I will be taking part in the raising to at least double my holding and get my option entitlement,as I believe we really have no choice at the moment,but beyond that I feel that the company has a strong future as things improve with both the markets and the U.S economy.All along the story of KOG has been one of timing and a lot of the time it has not been good,but as I have said before we have got to this point by the skin of our teeth and I believe we are about to turn the corner...more later.
KOG Price at posting:
2.1¢ Sentiment: Hold Disclosure: Held
