OTCPK:AUSTF - Post by User
Comment by
shambanoon Jun 12, 2007 11:09pm
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Post# 12933838
RE: Outlooks
RE: Outlooksa) Could do a financing -- have not done one for several years, if at all.
S/O is not that high but with a 10-20 million offering they would be getting closer to 80-100 million which IMO is the max for a company this size. I vote no on this option.
b) Sell more Canadian property -- down to three now.
This options works but if you have a good property with good prospects then why sell it especially now as premiums have come down. If the property is mature then by all means sell it and move on. I’m not sure where ANG’s CND properties fit?
c) Live on cash flow, Blaine drilling will be done only to restore volume at 4000 mcf.
This is a good option as long as NG prices start to climb again later in 2007 and CF starts to increase at some point to fund other projects, but it does nothing for the share price in the interim.
d) Farm out some of the oil prospects.
This is a good option as it starts things moving again, yes you give a percentage of the play but you don’t risk anything and if the wells are good you get more cash and more production and more reserves.
e) Merge with somebody with little or no debt.
This is the best option as there are many juniors in similar situation not getting much respect form the market these days, so find a good junior that is under-appreciated and merge creating a bigger junior with hopefully more stable production and more critical mass to keep growing forward.
Which door do your choose?
So in summery I choose b if CND properties are mature and they get a decent price. I also choose d if management doesn’t want to consider e. If they consider e then forget about b especially if the prospects are good.