This day and age of big $$$$ for everything DXE/NFK will not be in a good position to raise any more money.The dilution would be to great.
I don't think that is the plan at all. If the well flows at anything over 2,000 bpd, this is a moot point; successive wells can be drilled out of cash flow. If the well flows less that that, granted the financial picture becomes more complicated but remember that NFK has over $9mm coming in from the warrants plus more from expiring options. It's now or never for the those warrants. DXE has $2mm potentially from warrants (already in-the-money) that expire in March. Add to this cash flow. Because of cost recovery, even a modest 1,000 bpd at $70 netback yields $4.5mm per quarter to be split between the partners. Against this is 3D seismic ($2.5-$3.5mm per DXE estimate), connection to pipeline infrastructure and de minimus G&A.
NFK warrants should be exercised but even if they are not, the company could still sell stock at say 20c at only minimal incremental dilution. As for DXE, I think they could easily raise enough for another well ($5mm) based on then current field production of 1,000 bopd.