Yes agree that investors may not support the raising - I'm sure the new broker will sort out a way to get 10 million for oex share of new wells. Remember Magna needs to be convinced! Debt deals on any reasonable terms are hard to come by for oil producers these days also. The current deal seems to be with sharks and not great twrms. If oex can continue with s capex soend now, cut 30% of rig cost in soft market and crack the code I think they will then have a chance of funding some of a proper Cambay development and testing the deeper zones with the new wells.
One lesson I've learnt with oex - you need to buy this at the right price as this stock can fall quickly and for no apparent reason! The flip side is - you usually get a few bits at the cherry of picking the stock up cheap when it does these nose dives. With rig contracting, financing and indian partner approvals - can't see spud for 6 months. Plenty of time to buy- though it would be great if it was sooner. Just after June would be good for my tax!
As I've said before -the India story is good! A great time to invest in oil while company valuations are low!
OEX Price at posting:
7.5¢ Sentiment: Buy Disclosure: Not Held
