G'day bigglesWe know that the oil is there,Flow rates, to be...

G'day biggles

We know that the oil is there,
Flow rates, to be expected as soon as humanly possible, certainly no more than two weeks, management has given shareholders the opportunity to participate knowing that facts as they come to hand.

Trust between management and shareholders is pivotal to the company raising the funds to build storage fasilities and commencing to drill further prospects in the immediate area.

The company, by its actions believe that commercialization of Malalos is very probable but also realise that they have minimal time to get as much oil out as possible.
The tax free period ends jan 28 next year, therefore the extra funds that a cap raising brings will go in to the immediate drilling, of further prospects with the company owned rigs. This augers well for time constraints as the rigs are at hand and available when needed but labour and storage fascillities cost money - it could be funded by the sale of oil on the island but the time would be eaten away as we would be on the drip feed at 200 bpd more or less hopefully more.

Although, 200bpd+ is fantastic for the company and makes them a producer and will greatly effect the share price, imagine what another 2 producing wells in the area would do if they could fall in the time frame.

So although cap raisings are often the scourge of the shareholder I see the companies actions as open, honest and necessary at this point in time to take advantage of the unique circumstance at hand

Regards views