LGO reported that it has raised 1M Pounds by issuing 111,111,110 new ordinary shares at 0.90 pence a share as working capital to be deployed for drilling purposes at the Goudron Field targeting the Goudron Sandstone. This did not go down well with investors and provide an opportunity for short sellers to pound on the stock.
Nevertheless, it is a step in the right direction to target the Goudron Sandstone which has a more consistent flow rate as demonstrated by Well GY672, very much unlike the C- Sands which has a high depletion in the flow rate.
I think LGO knew of the shortcomings and therefore realigned their strategy. The drill to the C-Sands however are not put to waste as it has provided LGO with invaluable data to plan for a water flood in the future.
My disclosure: I won shares of LGO.
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