Connacher Oil & Gas Ltd CLLZF

dilution

[papaloapan]

Before the first pod was shut down I recall Gusella had indicated that they had the funding in place for pod 2 - cash and lines of credit.   He has also frequently said that he wanted to go it alone - no partners.

Can't for the life of me figure out why he did such a dilutive stock offering.   The money was necessary, i guess, even though I recall that prior statements indicated it was not in the cards, but he would have been better off sitting with pod 1 producing and wait for oil prices to rise, and bring the stock price back, before issuing more stock. 

The bottom line is that we have a new partner - all those new stockholders - but he has no new partner to which he was accountable. 

I have a large position, but in my opinion this is dead money now until pod 2 is producing, and even then depends on whether oil prices have moved much higher.

My theory was that this was largely a self funding operation that would see production increase by 10,000 bbls every two years or so, but things have changed and there is nothing to do now but sit and wait, and hope rising oil prices lets this float up with the tide.