TSXV:ART.H - Post by User
Post by
justin_a_lyesseon Apr 09, 2010 2:13pm
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Post# 16975483
A few more interesting facts ...
A few more interesting facts ...From the report:
? F2011 outlook. Our F2011 outlook is based on net capital spending of $17.3 million, which assumes one exploration well will be drilled at a cost of US$30 million-US$35 million (US$13.9 million- US$16.2 million net) and potential additional seismic. We forecast minimal cash flow being generated from its Canadian operations, and as such weforecast Vast’s year-end cash deficit at $2.5 million. We place a high probability Vast will look to raise additional equity in calendar 2010 if warrants are not fully exercised in June.
? F2012 outlook. Our net capital spending forecast of $18.7 million in F2012 incorporates drilling one additional exploration well at Qara Dagh and potential for a further 2D/3D seismic acquisition program. Our base outlook does not include any potential spending associated with development activities or facilities construction, but could change pending a successful discovery this year. In our view, first production is unlikely to occur prior to F2013.
So, for the next two years it looks like they will have to raise about 35 million $$ via an equity issue. Even at today's SP, that's less than 40 million shares. And we're talking less than 25 million shares if the SP is in the $1.50 range ... which I'm pretty sure it will be by the time they need more capitol.
So much for G40's prediction of an equity issue of 200 million shares.