Trouble is, there's no money coming in to pay for pipelines etc, and figures of $100m for the field are just silly. Anyone looking at the asset would look at the feeble state of the company's books and make an offer accordingly. In a best case scenario, that would be $20m, which with over 500m shares would value them at less than 4 cents each, and that's a best case. There is of course the Johnson Range, but that's probably 5 years away, and given their previous track record, they'll probably sell that asset for next to nothing. The reason the SP has collapsed is because the company has never given any sort of timeframe for when they will start to actually MAKE MONEY from production - just more fraccing, flowing, blah blah nonsense, and we all know what the market thinks of that. I know I keep banging on about it, but that's a fact - they're not making any and we're losing all of ours! I think in future I'll stick to companies that announce things like "has signed a deal for $3m to do something", regardless of whether management is "very pleased" or not.
GDN Price at posting:
5.0¢ Sentiment: Sell Disclosure: Not Held
