Post by
aagold on Apr 27, 2011 8:42am
2011 capital budget
Maybe I'm missing something, but isn't TriOil going to have to issue new shares in 2011 to fund the 2011 capital budget? They exited Q1 2011 with a $1M working capital defficiency. Assuming they're going to spend $45M over the remaining 3 quarters, and given that their credit line is $25M, that leaves a hole of about $20M. Looks like they were generating cash from operations at a run rate of about $800K per year in Q4 2010. Even if that doubles in 2011, that's only $1.6M to fill a $20M hole. Am I missing something, or is dilution a near certainty in 2011?
Comment by
cookster9 on Apr 27, 2011 9:44am
This post has been removed in accordance with Community Policy
Comment by
aagold on Apr 27, 2011 9:59am
I'm new to the jr. oil and gas space, so this is a surprise to me. When they issue new shares, do they discuss how long they expect the cash to last? I mean, was it clearly disclosed to investors that they didn't have enough cash to fund the 2011 capital budget? I didn't see anything written about that...