RE:RE:RE:RE:RE:Minnesota is a step closer A step-out well would give the share price a big shove northward in my view (assuming they can get the relevant regulatory approvals). I'd expect a cash-raise before then though. I was looking over their latest financial results (which came out yesterday), and by my calculations they have around US$4.8m in the bank, before the current flow test. The drilling of the well seems to have gone way over-budget (it cost around US$3.5m), and, although they said the lessons learned should help them keep costs down in future wells, there's some expensive stuff they're probably lining up, including:
- A step-out well
- More seismic (as you recall, the apparent helium play went outside the confines of the previous seismic survey)
- a FEED (front end engineering and design) project.
So, as such, although they probably do have enough money for a step-out well (which is great news), if they really are keen to accelerate things, I'd think they'd want to raise a decent chunk of change, perhaps after the resource calculation is out.
Of course, it goes without saying that all this depends on a successful flow test.....