.

thanks to cumingtonite1 on ll




This is really good news. Obviously $50 million is an awful lot of money and takes care of financing concerns for the short to medium term but I would say that it is better news that even that. Here's why:

- Obviously It differs from an equity draw down from the point of view of being non-diluting (It would be the equivalent of an additional 44million shares (18%) dilution at yesterday's £1.13 level). And if we assume as we must that Esousa would have continued to sell as further shares are obtained to maintain whatever their pre-decided target stake is in the company then that dilution would have been even heavier. Just the fact of continual diluting RNS would have surpress the SP. A 90p share price would mean 56million news shares, 80p = 63million etc... Today's news obviates this threat.


.- Further to this it is symbolically significant. An Equity line finance from firms such as Esousa is done on limited risk to the financing company. For the simple reason that they alway buy shares at a discount and will be able to buy more if the share price falls again at a discount. Thus keeping their average price lower that current share price.
The same can not be said for West Face. They are simply lending money and accepting that if the company cannot afford to pay them back then they will at the very least take a substantail hair cut. They therefore have to quantify that risk by way of interest rate. Here the acceptable risk for the whopping sum of $50million is 14%. Symbolically this sends a significant symbol to the market.

Finally it's signifcant because we are all very confident that the oil is there and that it can be retrieved. There is a tipping point which we are all waiting for beyond which this company generates more money than it spends. The question is how many shares in issue will there be at that point? Once this drill starts to send back further confirmation of comerciality then there is no reason to think that further reserve based financing will not be forthcoming, perhaps at even lower rates of interest. This is a very significant step to stabalising Shares in issue at 2-300million. We now know that they can raise substantial sums without issuing shares and that's before the further imminently anticipated news.

When in a year's time we're sitting at home reflecting on when it was that we first knew that our investment was going to come good I think that we'll remember right now.

I thought they needed close to a $billion to get up and running 100%?

We will see what the market think on Tuesday ?
Have the company just raised enough funds until a takeover or a jv comes along.

Must confess have not followed this company much in the last year or so, with reading. Anyone know what this EWT is? Is it the current drilling program ?

Just wonder how many investors are sitting with a sp of £2, £3 + just waiting to get out. Im one.

i don't but i'ld be out even at £2 with a handsome profit

EWT some sort of flow rate results ? Good for you cynic.

http://tmx.quotemedia.com/article.php?newsid=50082545&qm_symbol=XEL

Extended well tests
DECC may authorise extended periods of test production (extended well tests – EWT) from exploration or appraisal wells prior to development approval if it can be demonstrated the licensee will thereby gain technical understanding or confidence in the performance of the field needed to progress towards a development.

The EWT should have realistic and definable appraisal objectives essential to the success of a development, and not be prejudicial to ultimate recovery. There is no strict criteria governing the maximum volume to be produced or the duration of an EWT, although duration is not usually expected to extend beyond 90 days. Duration may be extended if there is technical justification but please note EWTs are not an alternative to production under an approved development plan.

There is no obligation to proceed with development following an EWT. EWT consent requires a formal letter of application that sets out the timetable and objectives of the test and quantities of oil and gas to be produced and saved or flared/vented. If oil and gas is to be saved during the EWT, a field determination may be required for the field in question. Throughout the test the operator should submit to DECC monthly oil, gas and water production figures. Please email these at the end of each month to david.roberts@decc.gsi.gov.uk

looks like the 50m is not enough then?

crazy sp, topped up today.

you're the one that's mad ..... markets looking very nasty now

If the sp drops to 50p im mad, more mad that i was sitting on an average of £3.28.
Only have a handful of these.

is that with or without fingers?

lol. not a nice day.

£3.28!!! sorry to hear that dc - be a while to see that again imo if ever tbh - glad you havent got many - personally going to wait a bit here

Only averaging down, dare I say it to jump ship.

http://www.moneyam.com/action/news/showArticle?id=4346550

dc - avg down sounds like a good option - i hope you get the lowest possible to help out your situation here

Thanks gibby , may make a few bob then.

£1.98 average now,not to bad.