RE:RE:RE:RE:GASX | News: +7 mio shares@1.0CAD + 7 mio Warrants@1.2CADI totally understand the dissapointment you all guys have . The truth is that i was also slightly annyoed , but they had to raise some money because as soon as they hit the first well they will have to pay for it .Now i dont really understand the warrant and the discount from 1.20 to 1 but it is actually not that bad considered that they will be needing some more money going forward.
Each well costs 6.8M$ and they have to pay 25% of it and then the rest in monthly payments. So 4(wells)X25%X6.8M$=6.8M$ which is 8.5M$ Cad.
My beliefe is that they guess that after hitting the gas at Sinu9 they will be rerated , so they will be able to raise the rest of the money (needed to built the infrastructure) in higher prices .
Along with that , the Maria Conchita block will be in production (projected end of year) , so they will be paying the rest of sinu9 from it.
Just some thoughts after some DD on the old PR for the sinu9 .
P.S. I Bet that Brian Paes Braga will be leading the PP of the money and the warrants .