RE:RE:Turnaround Story of 2014 ?In the absence of tangible assets/value , consolidation will have negative consequences for the post consolid share price.
This is not the case here.
The two assets have solid tangible value but need an infusion of working capital to advance these to fair value.
WED is a good example of how consolidation increased the post consolid share price above the pre level.
An equity raise oif &15 million at $ 0.50 post consolid should do the trick and enable FV sidetrack to add another 1000 beeped doubling cash flows to $12 million or about $0.25 per post consol share.
At peer multiple of 6 times, fair value would be about $1.50 or more, given that two more wells remain to boost fair value higher.
Or they could sell FV and use the cash to increase gas processing business.
This would avoid the need to consolidate shares.
Discounted NPV is $123 million less about $50 million to drill 3 redevolment wells and $50 million might be an attractive selling price.
Depending on the option, consolidation might not be needed but they have that option should an equity raise be necessary