yesterday the company announced that it had raised £9m at 40, slightly more raised at a slightly higher price than indicated. Money to be spent on the 3rd well, testing at Cascadura and inevitable working cap requirements.
Its always a drag having to announce that things are taking longer than hoped but when you have an army of retail breathing down your neck I guess that needs must. Today it is announced that testing of West Newton A-2 is taking longer than some had expected but better news is that work will start at B-1 in Q2.
Falcon Oil & Gas
The company report that they have had successful drilling at the Kyalla 117 N2-1H ST2 horizontal well and drilling operations have been completed. At TMD of 3,809m including a 1579m lateral section in the Lower Kyalla formation is looking good and now the JV goes on to fracture stimulation. Looking pretty good for uber patient FOG shareholders.
The company has announced a zero coupon, 2nd ranking unsecured £8m convertible bond of which 90% can be drawn down. Now call me old fashioned but didn’t it used to be drilling with equity and development with debt? They will be paying a divvi out of it next…Anyway give the company credit (some have) for finding the money wherever they can to get this hole drilled for once and for all.
The good thing is that I am meeting with the company today and I’m sure they will put me right on a number of things, not the least how well the farm-out discussions are going….