Your theory is right but business isn’t that simple, especially in a field where there is so much capital expenditure required. It’s our boards job to get us the best possible % of this future field which we have 0% chance of developing ourselves. It is beach/ sto’s boards job to try and pinch it from us for as little as possible. I know some posters have been cranky with this cap raise suggesting we should have just gone to the bank for money. This is just not realistic. We have no cashflow, no certified reserves and nothing but an enormous amount of capex ahead in the near term. Our best bet is to get the certified reserves, have some certainty about that pipeline so we can fulfill the obligations of a GSA and have some money in the bank so we are not desperate and then play off the big guns for the best possible deal be it a farm in or full takeover offer. For those that ever thought RLE was going to benefit 100% from this field they were dreaming. But even 50% of this field with its enormous potential could be a multi-bagger in my opinion.
RLE Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
