Sometimes there are no good options. Its much like a chess game. At the beginning of the game the possibilites and choices are almost infinite. As the game goes on, and you make moves (good or bad) your options become more and more constrained.
The company had a very large stash of cash from the sale of the rights. The company was also privvy to the JDZ drilling results.
Instead of cutting expenses to the bone and investing the proceeds in conservative investments, management richly paid themselves to invest in a fraud ($5,000,000 loss) while burning through over $4 million a year in 'general and administrative' expenses. The results of this is that the vast majority of the 35 million for the JDZ sale has been squandered. Had the cash been conserved, the remaing cash would have been more than sufficent to cover the much if not all of the anticipated cash now required.
Asking what I would do now is much like asking the captain of the Titanic what his plans are to save the ship.
If selling the percentages of the JDZ rights was a good idea, why not do the same thing here? If the blocks are as prolific as is claimed, would it not be better to spread the risk and minimize dilution? Sell a portion of the rights & get less money to be spread around fewer shares with less risk.
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