Company DirectionHey,
Been on hiatus for a while and looking to get back into trading. Blackbird was on my radar a few months back and continues to draw my interest. I paged through the MD&A and have a question for those that are more in tune with the company's direction.
Financing
Excerpt from page 4 of the MD&A:
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In addition, Blackbird is proactively addressing its material uncertainties with respect to access, egress, and infrastructure (collectively “infrastructure”) which will require further capital expenditure. The amount of capital expenditure required to address these material uncertainties related to infrastructure is not yet known by the Company but it isanticipated to be material.
As a result of the Company’s current commitments, expected expenditures not yet committed, and the material uncertainty with respect to infrastructure, management expects that the Company will require further funding in the form of additional equity issuances, the assumption of debt, off - balance sheet financing, or a combination thereof in order to meet its planned growth objectives and to fund future development activities.
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What is the company's plan moving forward? Why all the uncertainty with respect to capital requirements? They have in excess of $20million CAD in the bank. If oil price stays depressed, isn't it a little haphazard to go ahead with production developments and further land acquisition? Companies are shutting in production all over the patch. Why not simply wait out the storm? I like the fact that management has been aggressive in land acquisition. Up until this point. However, to continue spending while having $20mil+ in the bank and issuing the above statement regarding more financing befuddles me to a degree.
Anyone?
-Shat