I have been giving that statement "operator ... "a lot of thought - I used to believe it but as Alcoa are a huge user in the area are we not to assume that they picked EGO but then could not get on with previous management and went over to TSV. They have committed a fortune there and could earn their own large percentage in the gas they could produce. Does that leave us out in the cold?
We need more gas and larger base of operations to still hold that mantle in my opinion.
We however also cannot have it both ways - we on this forum have to decide if now is the right time to be drilling or even getting a farmin. I don't want either to be planned or executed in this market as I think that locks in a very low upside for shareholders. I think we should no longer bash directors for not doing it - it cannot be done at these prices.
For my money I would prefer that we do a sale and leaseback of the plant to ERM and get the debt off our hands or a long term loan is agreed on reasonable terms. I cannot see any bank doing it. The upside is no longer an option for ERM so I think they should just abandon it. I would then reduce overhead costs - get rid of at least 1 director and reduce the chairman's pay and get the rest to take a small haircut to show shareholders they are in the same boat.
