I have no faith in the management of this company. However, only an out of control lunatic would be selling all assets and rejecting significant options income for nothing. Unfortunately right or wrong that is what I believe. I may be wrong with regard to Sciano and deBoer. I hope not.
Take a scenario that management announces a new frac of P3 to proceed immediately, the fields reserves are many times larger than previously announced, the pipeline is approved and the pipes will be ordered, a pilot production plant is acquired and will be delivered and commissioned for gas delivery in late 2010 and that funding is in place, through a 20% farm-in arrangement for infrastructure and the drilling of P4. If all this is done within the next 6 -10 weeks what price the shares? What price the options?
If this management is worth anything at all, it cannot afford and will not allow the options to expire out of the money.
If they do let the options expire out of the money then GDN as an ASX listed entity is over.
GDN Price at posting:
5.6¢ Sentiment: None Disclosure: Held
