High North Resources Ltd HNTHF

RE:RE:smell something

[OILANDGAS]

This play is not without risk as there are a 2 or 3 Montney subcrop edges on this play so need to be in the right position on these edges to get the best wells. The management is unknown to me and the way they have conducted the financial end of the business is not top notch. They need money to ring the cash register and the debenture financing covers their debt and monies to reduce the GORR on the lands. They should have done a financing when they announced the wells at a discount to the share price at that time. They should have raised 30 million so that they can drill wells and prove up the asset. Not doing this financing was a mistake and the 12% debenture illustrates that point. They have a good land position on a decent play but without cash to drill the play, it just a play. The delay in drilling additional wells to satisfy their drilling commitment is another sign that they need money. The money guys know this and are waiting in the wings. They will finance but at a much lower price then the current share price.