from here

Well quarterly was pretty much as expected, the well are off and there is little money left

Bad points

a) we have 3.9 mill left in cash (expected outflows for the quarter are 1.5 mill, it leaves u wondering therefore why they are seeking funding considering they have enough money to get them through the next quarter by which time they - according to some here - expect to be bought out anyway)

b) we have 51 mill in debt. That is a debt to equity ratio of 15! I dont think i've ever seen that before in my life!

Good points

a) we know that we have 139 bcf of 1P gas, this is not conjecture.

The Issue

Where I am stumped is the sale bit. We obviously dont hold the upper hand in any deal. Any company will have access to the stuff we do and see that the company is in a very bad financial position. So, companies - being companies - will make low offers.

Put it this way - if I knew that 139 was going to be bought for 2.5 mcf i would buy tomorrow. But I dont and those that think they know it will also thought the reserve report was going to be good.

Are there any North American Gas M&A specialists on here?