Oh, and what does not help either - when these two companies made this deal, oil (WTI) was at $95bbl. Today oil sits right at $80bbl. That's another 20% down. This proposition which wasn't all that flash to begin with (particularly for HOG), is a lot less attractive now. It'll be interesting to see what the break even is on these proposed development projects but I suspect it won't be far below $80bbl (so why do the deal at all)?
Also, unless I am missing something this will need shareholder approval. Why have they called a separate AGM (and not incorporated this issue)? Seems rather wasteful (both of money and everyone's time).
HOG Price at posting:
1.3¢ Sentiment: None Disclosure: Held
