Groundstar Resources Ltd GRDSF

RE: RE: RE: RE: Here we go gain

[Fernando2010]

I made some calculations about the present liquidity situation of the company
With the recent raise of capital, I think that the company has enough funds to provide for the costs of drilling the last 200 mts in Kurdistan, and G&A expenses until the end of the current fiscal period (april 30, 2012).
So, we don´t need any extra money for at least a few months.
My biggest worry is the potential dilution that will take place if management decides to go ahead with a second well in Kurdistan. In the last conference call, Vast´s management said that the financing for the next well will have to be arranged by the end of the year.
We need to pay for 8% of the cost of the future well, taking into account our share of Kurdistan government´carry  (we need to pay around us$ 4 o 5 millons).
Management need to get any good news before reaching that point of time (e.g.: a sucess in Kurdistan of Guyana) in order to have the possibility of raising the new capital at a higher stock price. Otherwise, the resulting dilution will be very hard to endure