Well on the 14th October 2008, Rhe announced an agreement to acquire the other half of Zeus from PIM. Well the 90 day limit has expired but no word? This has a large bearing on the company as it will use up most of the cash in the piggy bank, I would question if there are not going to be better buys coming up as whole companies go under and need to liquidate their polio of oil interests. I do however see the value in obtaining the other half of zeus but at a cost!, during the three month period oil has dropped to just $35 p/b and many north sea companies are struggling to survive. option 1. do nothing hold just 5% increase if PIM defaults use current cash no borrowing to fund the development. option 2. take up the other 5% use most of available cash borrow heavily to fund development and pray oil goes back over $us50 p/b. if wrong company sinks!
RHE Price at posting:
10.0¢ Sentiment: LT Buy Disclosure: Held
