will the permain basin deal go ahead?, page-4

G'day fellas, thanks for sharing what you think. Good to finally hear some feedback. Cortex408, just a few points;

1. "They reduced the amount of shares issued from 1 in 3.5 to 1 in 5. Is this because they anticipate having more than enough cash after the deal collapses?"

Possibly, but every comment they've made in the same announcements has been to the contrary. Still, after everything they've said, a possibility.

2. "They have been focusing on other projects. They announced a new well at Bullseye and possibilities of a well at NVille and drilling deeper at Silverwood. How can they afford all this in addition to Permain Basin development?"

According to the latest;

Bullseye - no date/quarter/half-year stated for next well. No cash conflict.
Napoleonville - no date yet. "during 2011". No cash conflict.
Silverwood - no well date indicated. No cash conflict.

I don't think other projects will affect cash position to hinder Permian costs, according to GGP's latest.

3. "They claim they will inform the market in regards to the deal after February 17. Is this because they want to withhold bad news until after the CR is complete?"

Maybe. Can't rule it out. Same as your first point, ie. deal will fall over. I don't think so.

4. "They have made several unexpected U-turns in the past regarding this deal and it would not surprise if they were to do so again."

They said they were buying at a certain price, then couldn't agree with AKW about that price, terminated, then agreed at a price markedly less than the original. Not that unusual. But have to agree with you, another change wouldn't surprise me. Maybe in our favour again?

I can't agree with point 2, but the others are possible. Is Elvis alive? Possible.

I guess we'll have to wait and see . . . . .

Cortex, what do you think of the actual asset? In terms of the value, price, land, figures, location, timeframe, well size, neighbours, etc, etc.



Mug