drilling update!, page-3

Hi Folks,

There is some empirical evidence about the quantity and quality of announcements by both the acquirer (FML) and the acquiree (CRE) before and during a takeover that shows a lack of announcements by respective parties at respective stages of a takeover.

In summary, there is a distinct lack of price sensitive announcements by both parties, particularly the acquirer (FML) post announcement of TO.

In my own mind, here is why i think this happens.

In takeover land, people are a little edgy. Life can turn on a dime and the sun seems to rise from the west occasionally. In takeover land, people drink way too much red wine and normally rose colored glasses become opaque!!! In takeover land, everything is suspicious (ahhh, they are releasing this just to boost the share price). In takeover land, people don't like uncertainty, they don't like surprises (good or bad). Takeover land is a bit like shutter island (some sort of copyright statement is appropriate here i guess - i don't own that name, nor did i think of it).

We are in this land right now. Any announcements made now will not recognise the value they deserve because of the above. We know they have 8 drill rigs operating, many of which are capable of increasing the resource and many of which are capable of increasing the reserve. The people in takeover land will however, be suspicious.

Let's finish what we (FML) started in takeover land and then move to a more prosperous place where fear and illusion don't rule what investors think - then, and only then, will it be safe to call the lab, get some results and release them to market.