I suspect a big cash issue will be required and this will really kill the price (well it has already). It will probably need a fair chunk of options attached to help persuade people to take the issue up. Major dilution I suspect.
At US$25 a barrel, the numbers really stack up. By my calcs they would only need 4000 barrels a day at this price to be in cash positive territory. If they got up the production by bringing the 3rd well on stream and fixing the 1st well, could survive, but they are a long way from this.
Those are very big IFS and this is very speculative. I did read they have completed toned down their exploration spend. Time will tell
MXO Price at posting:
0.0¢ Sentiment: None Disclosure: Held
