11-15-2012, 09:50 AM
The following paragraph from the earnings announcement is slightly concerning as a shareholder. However with that being said it appears that the management team is well aware that they need more $$ in order to sufficiently develop all of our resources. As we all know the fastest way to achieve this is via SD. Also as someone in the finance industry I think a lot more financial institutions will be willing to discuss lending needs with IOC once they have a SM as a partner & behind the project. Hopefully we will know more tomorrow.
"The Company believes that it has sufficient funds for the Midstream Refinery and Downstream operations; however,
existing cash balances and ongoing cash generated from these operations will not be sufficient to facilitate further
necessary development of the Elk and Antelope fields, appraisal of Triceratops field, condensate stripping and liquefaction
facilities. Therefore the Company must extend or secure sufficient funding through renewed or additional borrowings,
equity raising and or asset sales to enable sufficient cash to be available to further its development plans. Management
expects that the Company will be able to secure the necessary financing through one, or a combination of, the
aforementioned alternatives. Accordingly, these condensed consolidated interim financial statements have been
prepared on a going concern basis in the belief that the Company will realize its assets and settle its liabilities and
commitments in the normal course of business and for at least the amounts stated."
"The Company believes that it has sufficient funds for the Midstream Refinery and Downstream operations; however,
existing cash balances and ongoing cash generated from these operations will not be sufficient to facilitate further
necessary development of the Elk and Antelope fields, appraisal of Triceratops field, condensate stripping and liquefaction
facilities. Therefore the Company must extend or secure sufficient funding through renewed or additional borrowings,
equity raising and or asset sales to enable sufficient cash to be available to further its development plans. Management
expects that the Company will be able to secure the necessary financing through one, or a combination of, the
aforementioned alternatives. Accordingly, these condensed consolidated interim financial statements have been
prepared on a going concern basis in the belief that the Company will realize its assets and settle its liabilities and
commitments in the normal course of business and for at least the amounts stated."