GREY:ENGFF - Post by User
Post by
Columbus1494on Jul 13, 2015 3:38pm
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Post# 23919113
Drilling Lotshi
Drilling LotshiAccording to Energulf drilling a well at Lotshi a few years ago was estimated to cost 6-8,5 million$.
The rig costs are 50% cheaper now.The cost of drilling a well now could be 3-5 million$.
Lets say they would need 5 milion$ to drill a well.If they see they wont be able to finalize a deal with a farm in partner soon,will they just let Lotshi go?
Imo in that case they will try to drill one well on their own.Best case scenario for us is Columbus Group finances all of the costs in exchange for an interest in Lotshi.The other case could be that
Energulf partially has to finance drilling.If Energulf would have to finace 50% of the costs with a
share price of 10 cents it would reqiure 25 milion new shares.If they announce drilling the share price could increase so the dilution could be less.