25 million reasons why hole #2 will be successfulNo one invests $ 25 million into a company if they did not already receive assurances that hole #2 will be successful.
We know that they had already spud hole #2 and were drilling before the bought deal.
For world experts like Jarvie it would not take much drilling to know whether they have the goods or not. He does not have to wait 12,500 feet. This would be hole #3 that he is witnessing. He saw drilling of our neighbor, he saw our hole 6-2 and, now is witnessing hole 6-1.
If pattern is similar then he knows that he has the goods.
Therefore word could have got out encouraging Hayward to want in for their clients. The fact that the dilutions is so small at 1.6% and, that bought deal is at market price tells me that it was more of a case of Hayward wanting in, then Reco needing money.
I do believe that you have to REWARD those who are with you, otherwise what is the point of life.
In this way, some shares were tossed to Hayward in celebration and, funds can be used to accelerate the Botswana project.
We have 5 basins so more drilling will mean project gets de-risked that much further and, higher premiums on any negotitated deal.
They always say follow the money trail, and what is money doing, it is loading up on RECO.
mpo