Reading the 10-Q again this morning in a more complete manner, I noticed the following item. It seems to me that to obtain $28 million funding, the company must have had significantly favorable results from the drilling in Wyoming. A company having market capitalization of $9 million getting $28 million in financing seems remarkable to me, assuming it does happen.
Including working capital, the acquisition of the Tabbs Bay property, and capital to accomplish various drilling and recompletion projects at Tabbs Bay and in the Company’s other project areas the Company has cash needs of approximately $25,000,000. To address these needs, management has entered into a Term Sheet with a capital provider wherein the Company would obtain net fund availability of approximately $28,000,000. The intent of these actions is to acquire and finance an oil and gas property with a source of recurring revenue and to obtain sufficient capital to expand the Company’s cash flow and reserve base. Although this effort is progressing as expected, there can be no assurance that the Company will be able to close such financing on terms satisfactory to the Company.
