the merger

Lets examine the reasons given by management for this merger

" Provides GGP shareholders the ability to scale up post the recent capital raisings in a well diversified
portfolio of development-oriented properties as well as some near term high impact exploration
drilling."

Fairly self explanatory, emphasis on scaling up with diversity.

" Significantly increase the risk-adjusted exposure to GGPs best exploration prospects at Silverwood
and Bowtie West where both projects have already been partially funded by PPL for the initial
drilling which will preserve GGPs recently raised capital for other activities."

It seems they might be even more satisfied with the seismic data they have on these two prospects. Obviously Silverwood will probably be the least risk, but they must be very happy with the bowtie prospect too. Note that they have specifically stated that both prospects have already been partially funded by PASS. So money has been provided to operators for some of the drilling costs. So the money paid by PASS is credited to GGP.

" Increase the GGP working interest position for a minimal cost exposure in both existing production
and development projects at Bullseye and the recent discovery at Fausse Point where GGP can
capture greater control and cost savings."

Now this point is interesting, greater control over these two wells/prospects. Obviously there is need to be able to exercise their knowledge and expertise rather than debate processes etc. Now that may explain why Bullseye has been seemingly at an impasse. It may be a case of too many cooks spoiling the broth.

I think there will be more to come with respect to Bullseye, as now GGP has full control. Fausse Point, well we know they are about to produce but at what rate. I suspect that once production starts it will be at the upper end of the 1.8 mcf per day rather than the .5 tested to date.

Knowledge is money, we only know what we are told. One could say we are mushrooms to some degree. SG has both the expertise and the knowledge specific to the prospects.

In summary May could be the month we all celebrate in this year, big few weeks to come now.