The 9.99% limitation is to keep the investor from becoming an insider who must report his trades like an officer or director.
That's just dumb.
The money is to drill wells, probably 2, maybe 3.
The concession is in very shallow water. Jack up rigs are available now and on the cheap.
Very very very doubtful. I can't see how they could possibly get anything approaching a decent offer until a successful well is drilled and they are able to de-risk the play. No, we are going to drill. That is what this financing is all about.
Even after they hit oil, you will still be saying they don't have the financial or technical capacity to drill the concession.
Give it a rest. Your failed "expert" pronouncements have completely destroyed your credibility.
They don't need one to drill. They can hire a rig and drill themselves, which is obviously what they plan to do.
To me the 9.9% cap is the most alarming thing about this deal. It means that as the "investor" receives shares they will have to sell to stay below 10%. That is typical used in a PIPES deal, which is what makes me very leery.
That kind of cap is clearly intended to keep the "investor" from being deemed by law to be an insider. Insiders (officers and directors and 10% shareholders) have to report their trades on Form 4. So the "investor" wants to keep its trades off the radar.
We could probably drill at least two holes with the $10 million; which is what I would do if I were in Stan's position.