settlement of weatherford litigation ..., page-19

Veeone,

my understanding is that the company do not require cash at this time.. remember that they recently did the $4.5 million placement at 11 cps plus sold approx 6m White Canyon Shares to RBC for $1.2m, that left them with $5.7m..

Since this time a decision was also made to conserve this cash and move straight into production testing, the burn rate these last few weeks would not have been that high (also remember that the Unit rig 234 is being held at no cost while test planning is being completed)

I believe that Weatherfords never had any intention of going to trial, but instead wanted to see how the drilling in PB#2 went... if it had been a 'duster' they could have negotiated a more favourable settlement for themselves...

I believe that Weatherford's decision to settle now ahead of Production Testing (which by all indications should be very positive) is to protect themselves from increased claims by GDN for loss of Production etc from PB #1 over the past 2 years.. In my opinion this early settlement is a positive as GDN management had already demonstrated their commitment to going to trial and taking this all the way.

GDN shareholders need to remember that the share price is not always a reflection of the fundamentals... particularly with GDN it is subject to trading overhang, expectation that things may be quiet for 2 weeks, and ill informed punters who base their decisions on emotion (fear and greed). The smart investors analyse the facts.

I do however find it unusual that the settlement was not disclosed...