Did not help. >
I doubt it was intended to.
The simple fact is they've now reduced their debt by 45% and the two new wells at Texas Reef will be replacing the production that they've lost with this sale so at least their monthly cash flow will almost double.
I don't know how much of the 2P in reserves were in these two properties, but they too will obviously need to be made up by more drilling of the many PUD sites at Texas Reef.
$2 million only allows them to drill a couple of new wells, so their next step will have to be getting someone else interested in paying to farm in for a few new wells for those PUDs that are pretty well guaranteed to provide a decent return.
At least these prices guarantee that the next round tranche of warrants will expire this April without diluting the shares anymore. If we can't get the cash, at least we don't have to deal with the negative impact of more share dilution.
By next April, 2014 almost all the warrants will either have been exercised or expired. Then we can finally issue more shares if need be. Until then we'll just be chugging along for the next year, growing slowly, but at least still growing.