We do not have sufficient funds to complete planned exploration and development activities and we will need to raise additional funds in order for us to complete the programs and meet our exploration COMMITMENTS.
Therefore, we must extend or secure sufficient funding through renewed borrowings, equity raising and/or asset sales to raise sufficient cash to meet these obligations over time and complete these long term plans. No
assurances can be given that we will be successful in obtaining new capital on terms acceptable to us, or at all, particularly given recent market volatility.
We will also be required to obtain substantial amounts of financing for the development of the Elk, Antelope and Triceratops fields, condensate stripping and associated facilities, pipelines and LNG export terminal facilities, and it will take a number of years to complete these projects. In the event that positive FID is reached in respect of these projects, we seek to be in a position to access the capital markets and/or sell an interest in our upstream properties in order to raise adequate capital. In September 2011, we retained financial advisors to help solicit and evaluate proposals from potential strategic partners to acquire interests in our Elk and Antelope fields, a condensate stripping facility, the LNG Project and exploration licenses. We are currently negotiating with a party which submitted a bid during that process.
The availability and cost of various sources of financing is highly dependent on market conditions and our
condition at the time we raise such capital and we can provide no assurances that we will be able to obtain such financing or conduct such sales on terms that are acceptable.
This is why they "updated" the option for the shelf registration a few months ago. Of course they will dilute. It's is obvious even to moron longs that they will...
One thing for you longs. The management has job stability. They have a refinery where they import oil and sell refined products to PNG. They make a couple of million from that (with high oil prices). They will be able to deduct their pay cheques from the income. It's gonna be you guys who are going to lose your money, sooner or later... It may be later but mark my words, this will be a sub-10 dollar stock.