Addax Petroleum (fka AXC)

[nordicroots]

I think that answer is pretty obvious isn't it? They need the cash to survive and hopefully fight another day and it would appear that their ability to raise cash in other ways - in this particular operating environment - is very limited at this point. As the recent filing shows, they are in arrears with respect to the cash calls on the last well(dry hole) they drilled with CEPSA ("Company is in significant arrears of cash calls relating to the company’s proportionate share of drilling costs [beyond operator-carried expenses] on the Tarach-1 well in Kenya Block 11A." [[ https://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11871816 ]) and raising cash is extremely important right now. Having sufficient capital to fund on-going operations is absolutely critical to ANY organization.

Now with all of that said, it certainly doesn't sit well with many of us (LT shareholders) to be thrown under the bus in this fashion (i.e., watching the value of our investments evaporate like this). The question that a lot of people have at this point is can management pull a rabbit out of their hat of magic tricks to turn things around before the "going concern" warnings ("dependent on raising additional capital to fund ongoing exploration projects and ultimately on attaining future profitable operations") lead us permanently to a point of no return. And keep in mind that this set of circumstances comes at a less than optimum point in time as it seems we are in the midst of an oil glut that is just now beginning to show cracks in the overall energy market. Heck, it's even affecting Exxon ( http://www.zerohedge.com/news/2017-02-22/exxon-cuts-reserves-record-33-bilion-barrels-oil-crash-finally-takes-toll ) (this is essentially saying that given current market conditions a LOT of Exxon's previously booked reserves are essentially "dry holes" as well as they won't be economical to produce in the current price environment). I'm not saying it's impossible (there ARE sources of funding out there, but management will have to turn over a lot of stones to find them) - it should be clear that it won't be a walk in the park.

I for one really did not like to see the use of the convertible debentures by the Company as more often than not they have led to the toxic death spiral for other little companies and this fact was widely described and discussed by many of the more informed members of this board since about the time it began.