Replies to post #17931 on Empire Energy Corporation Intl. (fka EEGC)

[crazyjogger925]

no argument from me just stating a point that as EEGC PROGRESSES
with their initial monies there should be an urgent need for even
a larger amount...the more wells you develop the larger dollar
amounts will be needed for infrastructure...that may be why the
new chairman from GRAND MONARCH was chosen as a finance man?imo

[EarnestDD]

Re: Cost of Capital
I agree with your comment about minimizing the cost of capital.
And that is why it would make sense for Malcolm to use the Line of Credit he had previously PR's for this purpose, as it would have a very low cost. Same as the Rights Offering, it was intended to be used for drilling, not for a debt conversion.

So now the only hope of capital for drilling is the much more expensive Sure Capital funding. And we still have NO assurances of Sure Capital's ability to raise ANY money as they have NO real project history and NO projects in the oil and gas sector.

Talk of raising $180 million when only $10 - $20 Million is needed to pay all creditors and drill the first well is short sighted as to the overall cost of capital.
jmo

2. Cost of Capital. As shareholders, we want EEGC to be sensitive to the terms of money raised as that affects share valuation.

In particular, capital raised for 'wildcat' purposes (Bellevue today) is a LOT more expensive than capital raised to drill additional wells where reserves have already been proven.