Maysteeler forgetsThe stock is already up 90 % over the last three months, which makes it very expensive... pre-financing. They are in a significant negative working capital position and absolutely need to finance. The price generally falls up to
25% after a financing.
If you take the geological risk, multiply by the risk of discovery, then again by the chance for development, there
is less than a 10 % chance that the first well leads to commercial development.
The economics are difficult. If they do develop... the company owns 40%, they would pay a 40% royalty, operating expense plus tax.