Motors, you could be right. GGP would be stupid not to consider it. The alternative would be a very illiquid stock that potential dies completely. Better diluted than dead.
But it might not be the reason. Remember Lind are getting a discount to vwap and then getting free options to boot. So it's not like they are cutting and running. They are just scalping a smaller than usual profit before pumping in more cash next tranche and repeating the process.
But the companies actions demonstrate that either Lind are uncomfortable with large drawdowns, or the company is aware the deal is a stinker. So they have scaled back recently which was our right if sp dipped below 0.2c
Now we are minimising dilution but at the expense of progress. No cash. No progress. We have enough money only to investigate the current performance (or lack of). But cant remedy anything.
Between lease expiry, ORRI, 25% interests, etc. This is a messy situation to try resolve. And it isn't cheap.
I can forgive dilution. We expect it. I can forgive high salaries - they all do it. I can forgive the odd stuff up. I can even forgive the initial purchase because even ~70% WI was a good deal.
I cant forgive the operational mistakes. None of the wells are anywhere near expectations. That has backed them into this corner more than any other single or combined issue.
70% of 400bopd from the Hori, Or lets say 600bopd from all wells combined. That would be serious cashflow. Opens up debt funding. Opens up takeover, or JV. And keeps sp high enough to raise capital with less dilution. But it didn't happen. Not even close.
On top of that, it requires co-operation from Page. He is operator. We need him onside. Yet nothing has been done to smooth things over.
This acreage will still make money for someone. Just not sure who.
GGP Price at posting:
2.5¢ Sentiment: Sell Disclosure: Not Held
