Considering the legals have played a major role in reeking havoc with funding and operational duties. A lot of emphasis was placed wholely and solely on the 4 "test" wells with a long period of time only focued on the following well as a HORI, now called the SRH#5.
Thought was to JV as much as we all anticipated would happen but the legals popped their ugly heads up to spoil the party.
With these legals being of the nature as they are and inherited through the AKW firesale which was supposed to give GGP a clear indemnity of any claims to legals. Because of them most funding is unavailable and to JV these leases, partners are not prepared to get involved in case it affects them too.
These restrictions have hung a noose around the neck of GGP, then again used these notes to soldier on at the dismay of shareholders. An action group is formed to sway the use of these notes to go forward and in a way has tightened the noose further around GGPs neck.
Im not saying the group is right or wrong in the action taken but do question the timing of it and the effects of this action in the immediate future. I can see both sides of it and appointing to replace 2 directors will not the current problems. Stop the issue of the notes wont help either as it probably can stop the horis needed to retain leases before they expire.
Maybe the company should have done a series of verts earlier realising the lease issues probability. With the current board telling us that these notes are our only options till a series of wells become online and funding future wells as they come up, how can 2 new directors change the funding of these notes if its the only way unless a huge amount of cash is injected by some other means. A takeover would then be party to the same current problems of legals currently incurred.
Its nasty all round no matter what. How can the group change the funding if theres no other options has me tricked unless they plan to fund it themselves. Im just looking for answers as much as anyone else.
Been wondering, since these legals were inherited within the sale from AKW, would the lease owners allow any room for extention when the time comes up in April. Surely its not GGPs fault for not developing these leases because of the inherited legal problems caused by another party that has restricted funding options to go forward.
GGP Price at posting:
0.7¢ Sentiment: None Disclosure: Not Held
