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Monday, December 23, 2013 1:05:57 PM
To me, increased A/S only means that management is prepping for the inevitable costs relevant to actual drilling. Shares will be offered to gain the necessary cash. Management will present these shares as collateral when dealing with financial avenues other than outright selling of these shares on the open market.
It is expected that such shares will be represented at a higher pps than currently being traded....based on future prospects realized by getting the up-front loan. Sure the O/S will rise but the float may not - with most shares 'printed' as the result of the loan being 'horded' rather than traded....think of the lending institutions as long-term investors rather than quick-buck traders.
The float is key. Ultimately though we all know that the real driving force is results. Without getting drilling permits and having some of those holes produce an income generating product (oil, gas), the announcement of increased A/S with increased O/S to follow - well, you can kiss this baby good-bye. I choose to wait and see.
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