SPP southern pacific petroleum nl

spp, page-15

  1. 1,747 Posts.
    I was interested in SPP myself and did some research from which I concluded that there are far better opportunities than this company.

    Basically, the share price is down because SPP are desperately short of funding. They just set out to raise $75m and received only $10m. This only tops up their working capital.They are trading at a loss.

    They have no funds for further development so they are stuck in a bind where they cannot go on without a major partner and to continue operating sustains further losses.

    This is so transparent that any prospective partner will simply play the waiting game and get the whole project rather than deal with SPP. ( even assuming that anyone would want it )

    I personally am saddened to see this great venture in this corner but this is the story.

    If you want to know more, go to their website and download the prospectus for their recent capital raisings. Pay particular attention to the warnings.

    Without a major partner this project will just run out of money and I can't see why a partner would be involved.

    The market will do what it will but the risks outweigh the rewards on this one.

    Regards M.
 
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