Financing:Here are at least 5 benefits for doing the financing now:
1. The obvious is to raise cash to fully fund their 2012 operations.
2. Completely remove Funding/Financial risks for 2012. They don't need to worry about world markets.
3. More of a speculative point - to allow some insiders to buy shares cheaply and give some other interested parties the same opportunity before the stock really starts rallying.
4. Increase liquidity levels for the stock as the float is pretty small currently - this would attract more investors as some tend to stay away from stocks that are not liquid enough.
5. A really big reason is so that they can tap into that Petro Plus Program faster and increase their net back by $20 per boe for their new production. Having a net back of around $50 is a big deal and would more than compensate for doing an equity financing now.
Again, with 30 to 40 wells drilling in 2012, the upside from current levels are really significant. Management team has proven themselves to manage effectively by drilling low risk locations and then use that money to fund future higher risk/higher potential wells. The team is currently 100% successful at drilling wells (12 for 12) and finding oil.