I still don't get your line of reasoning. If he looks at doing a PP for $6 million, regardless of how many shares there currently are, that will cause a dilution of 10% (since we have a current market cap of $60 mil). Whether that is another 42 million or 4.2 million, it still has the same net effect.

If you do enough of these PP (and they will, drilling is expensive), we end up a few years from now in exactly the same boat. Our stock has diluted to 400 million shares out again, and our SP is back into $0.14. Only now I have 1/10 of the shares.