In the potential scenario of an equity swap the question would...

In the potential scenario of an equity swap the question would be capping by whom.

There would be a few ways to determine value of OD assets as a part of the whole but you would assume a part of this would involve agreement on a value for all CHKs non OD assets and cash.

Cash - $10m
Pyramid Lake
Wee MacGregor
Mt Gordon, Success & Mt Colbalt

I did a quick and dirty DCF valuation on Pyramid Lake and could easily justify $20m value on this, we know Wee MacGregor is wanted by CLE and the other assets would have some value.

So theoretically if the current MC is say $50m and $30m (or more) of that is non OD assets then the value of our 80% (as currently valued by the market) would be no more than say $20m.

So the remaining 20% is worth say $5m equity (escrowed of course) and OD can then sit back and enjoy the ride.

Of course if the current share price were a lot higher OD would end up with a bigger slice of the pie as the OD assets would hold a greater % value also.

So the interesting question is capping by whom? I would potentially argue in an equity swap scenario keeping the price around current prices until the deal is done may be in the best interest of current shareholders.