Post by JimmyRobby85 on Mar 10, 2014 12:03:36 GMT
Hi All,
Well reading around the BB's today it's interesting to see those on the boards that think the SP will rise come the GM or that news will be out prior to the GM. I'd like to put two situations together about the current state of the SP and what could happen.
If all resolutions are passed
I'm going to be 100% honest with myself and others, nothing gives me confidence that Texas sale will complete any time soon or that we will get the IOP money due in April. RBL well to be honest RBL wasn't even mentioned in the Annual report.
So IMO I just can't see any of the big 3 happening in days or weeks and its highly likely it will take many more months to close these deals.
We have funds available at the moment as per the annual report, circa $4 mil. However I see the resolution 3 placement getting used, if its passed.
Just a few reasons why that may happen
- It says for working capital, however we have circa $4 mil and we have just put all of our rigs through a repair programme of sorts, we previously had all of our rigs out of action for months for this?
- Taking the above into consideration the money could be used to start waterflood programme, which isn't cheap
- To continue to flush our money down the drain on debts etc, though as far as I am aware our debts are not to large?
some important notes to take from the resolution
-the Shares will be issued no later than 3 months after the date of the Meeting (or such later date to the extent permitted by any ASX waiver or modification of the ASX Listing Rules) and it is intended that issue of the Shares will occur progressively;
IMO we would have no need for this resolution if indeed its just for a back up, especially after the emails and concerns of shareholders to Rory over the last few months - 3 months? well IMO it will be used more or less immediatly
-the issue price will be not less than 80% of the average market price for Shares calculated over the 5 days on which sales in the Shares are recorded before the day on which the issue is made or, if there is a prospectus, over the last 5 days on which sales in the securities were recorded before the date the prospectus is signed;
Great 80% of the current price, so whomever gets these shares will sell them to the market at 1p to make a quick profit - We have seen this time and time again over the last year
-the Shares will be issued to sophisticated and professional investors known to the Company. The Directors will determine to whom the Shares will be issued but these persons will not be related parties of the Company;
I'm pleased its a group known to the company, one thing is for certain it doesn't fill me with confidence either.
Considering all the above I believe if all resolutions are passed and the BIG 3 money RNA's dont come then we will dilute and the SP will fall furter, probably down to the 0.8 area
If enough votes are cast to stop reso 3 then no further dilution, however still no big 3 will see the SP fall to maybe 0.9p?
If one or more of the big 3 come it will be more relief than anything but the SP could soon start to rise if these deals are closed.
Well reading around the BB's today it's interesting to see those on the boards that think the SP will rise come the GM or that news will be out prior to the GM. I'd like to put two situations together about the current state of the SP and what could happen.
If all resolutions are passed
I'm going to be 100% honest with myself and others, nothing gives me confidence that Texas sale will complete any time soon or that we will get the IOP money due in April. RBL well to be honest RBL wasn't even mentioned in the Annual report.
So IMO I just can't see any of the big 3 happening in days or weeks and its highly likely it will take many more months to close these deals.
We have funds available at the moment as per the annual report, circa $4 mil. However I see the resolution 3 placement getting used, if its passed.
Just a few reasons why that may happen
- It says for working capital, however we have circa $4 mil and we have just put all of our rigs through a repair programme of sorts, we previously had all of our rigs out of action for months for this?
- Taking the above into consideration the money could be used to start waterflood programme, which isn't cheap
- To continue to flush our money down the drain on debts etc, though as far as I am aware our debts are not to large?
some important notes to take from the resolution
-the Shares will be issued no later than 3 months after the date of the Meeting (or such later date to the extent permitted by any ASX waiver or modification of the ASX Listing Rules) and it is intended that issue of the Shares will occur progressively;
IMO we would have no need for this resolution if indeed its just for a back up, especially after the emails and concerns of shareholders to Rory over the last few months - 3 months? well IMO it will be used more or less immediatly
-the issue price will be not less than 80% of the average market price for Shares calculated over the 5 days on which sales in the Shares are recorded before the day on which the issue is made or, if there is a prospectus, over the last 5 days on which sales in the securities were recorded before the date the prospectus is signed;
Great 80% of the current price, so whomever gets these shares will sell them to the market at 1p to make a quick profit - We have seen this time and time again over the last year
-the Shares will be issued to sophisticated and professional investors known to the Company. The Directors will determine to whom the Shares will be issued but these persons will not be related parties of the Company;
I'm pleased its a group known to the company, one thing is for certain it doesn't fill me with confidence either.
Considering all the above I believe if all resolutions are passed and the BIG 3 money RNA's dont come then we will dilute and the SP will fall furter, probably down to the 0.8 area
If enough votes are cast to stop reso 3 then no further dilution, however still no big 3 will see the SP fall to maybe 0.9p?
If one or more of the big 3 come it will be more relief than anything but the SP could soon start to rise if these deals are closed.
