Well quite a bit has changed (especially the SP) since my previous post on this thread.
Market cap at last post was approx $14M, now $7M.
The option excise was quite successful considering the strike price was around the SP. I wasn't the only one who decided to put in some cash.
AGL aren't going to sole fund the confirmation well. TEY now have to look at plan B, C, etc.
AGL have maintained their 10% share. I'm sure they knew they weren't going to proceed with the well when they decided to maintain their position. I guess it is a small gesture to still show some support.
From recent announcement: "Whilst no one can dispute the technical challenges ahead of the industry, the enormous potential of geothermal and its importance to a sustainable future cannot be ignored, which will continue to drive interest from government, industry and markets."
"The Company looks forward to advancing Parachilna through other avenues, and will commence meaningful discussions with a leading Australian energy company early next week."
Who is the leading Australian energy company? Perhaps Origin given they have cash available and they are not only working with GDY for geothermal opportunities.
There has been talk about consolidation in the geothermal industry given the massive capital requirements that are required to get projects up and running. If anyone was looking to acquire TEY, I don't think they would see $7M as expensive.
I increased my holding yesterday and will continue to monitor the SP. In this market the SP will probably come under more pressure. I don't intend to try and pick the bottom.
I also understand that my TEY investment may be a complete dud, but there is also blue sky potential ahead. I have factored in a complete loss scenario for my portfolio.
I am still happy that I excised my options since it actually provided the company with the cash it needed to progress it's exploration projects. Buy/selling the shares doesn't help their cash position.
TEY Price at posting:
9.8¢ Sentiment: LT Buy Disclosure: Held
