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Longford Energy Inc V.LFD



TSXV:LFD - Post by User

Comment by EOIMon Jul 07, 2011 1:46pm
209 Views
Post# 18807175

RE: RE: Change in Operator before Drilling

RE: RE: Change in Operator before DrillingI agree that with $7 million net raised last month, the company is still short of funds to secure the minimum deposit required for a rig to mobilize on ite. The company needs at least additional $8 million to secure a rig. This indeed cast a big doubt on their ability to start drilling in Q3 unless they merged with VST and joined capital. VST is also financially stressed out!! The best option would be to bring in another partner like NIKO and get them fund the drilling. The consequences is that it would be highly dilutive because NIKO might want a minimum 20% stake leaving LFD bagholders with only 20%.
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