Q&A for Dave, page-32

@spinefx
Q for Dave

In the interview with Mike Boydell, MD of AJ Bell Media and Dave Wall about 88 Energy.
(Courtesy of CO0pz.Uploaded to Youtube on June 20th 2017.)

You talked about the foward plan following either success or failure of IW2 - see quoted transcript below
Can you give an update on this given we are a year on and things have changed, what is your view now on the next steps and paths to securing capital for that plan?

Transcript
"MB: And you raised an issue of funds in March, I think you then quoted a total of $39M AUD at that point. Clearly you are spending some cash now on the existing project. Do you think you need to raise funds in the next 6 months, 12 months, or do you think you’ve got sufficient capital base now?
DW: On the back of success we will need additional funding so, just to break it down; $30M USD, we tend to think in USD, our share of the costs of the well; 14M USD. And then, you know, overheads and everything like that. So we’ll have $12M to $13M USD left after the finalisation of this program and things are on budget, which is probably something that people will want to understand, it’s not over at the moment, and doesn’t look like it will go over. And then obviously any follow up wells that we drill we would need additional funding. So the horizontal follow up well would cost in the order of $25M USD of which our share would be around $20M USD and Burgundy would fund the remainder. And then the conventional test well out to the West also would cost in the order of $17M or $18M USD. So the $10M or $12M or $13M USD we have in the bank post the drilling of this well won’t cover that, either in the success or the failure case. So we would need to get additional funding from somewhere. So obviously in the success case, if the market cap goes up and it’s less dilutive for us to raise money and investors want us to raise money, rather than sell part of the acreage or farm it out, we would do that. And then in the failure case I think that funding that conventional test well is something that we would look to farm out that well rather than raise money because share price in the failure case would be lower and so the dilution associated with that would be harder to swallow. Whereas I think that in the success case a higher share price obviously affords a much less dilutive path."