Trading Halt for a "Potential CR", trading halt for obvious reasons being that the deal is SIGNED and ready to be actioned and to minimise the potential for insider trading.
Makes me wonder if SG has given a bigger player a few hundred million units at 1.5-2c with oppies at lets say 4c(arguements sake) to get our first 2 fracced (ggp) with our first hori on a JV basis.
With the knowledge gained from our intervals (testing completed as per the previous ann.) you would presume that the they would be ready to exploit the maximum potential from within the Cline/Sprawbery/Wolfcamp and get around 600-1000 boed initially, split half way (for arguements sake) 300boed plus all off ggp's other assets to get to 600 boed+, the SP would have to reflect the bearing of fruit.
The question that doesn't get asked in these threads about the JV discussions is how is how the obviously bigger partner will want to gain maximum value from this transaction.
They would have the upside of testing done on the land, GGP willing to take the burden of being the operator (our only real well to drill atm), quick payback but most importantly LEVERAGE within the GGP SP.
I don't know of any debt free O & G companies putting out 600 boed+ with a mc of 30mil.
We obviously have to get to 600 boed+ first but with EF, Sugar Valley, well 4 coming through and the fracing of our first 2 we are getting close.
I hope its not a SP with Novus at sub levels but the 'potential' part within the ann. looks like its alluding away from it, anyone with a different take on what could be on offer?
GGP Price at posting:
1.4¢ Sentiment: LT Buy Disclosure: Held
