Seismic Reflections: Fully funded explorers?

Investors in Chariot Oil & Gas received good news earlier this month when the company confirmed it had secured a rig to drill its first exploration well offshore Namibia on Tapir South. In a tight rig market, the company had managed to seal a deal and pave the way for drilling to begin in April, taking the company closer to a well result and a potential discovery. Two weeks later, Chariot announced that it had conditionally placed shares to raise around $49m to fund additional activity in the well. As pure exploration companies like Chariot look to keep options open and adapt to changing requirements as new information is acquired, can investors judge when such a company is really fully funded?

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