The amendment means that anyone with $50k can now contact Novus and invest in the company.
This will lead to the company completing its first horizontal and proving up the acreage to a JV or independant resource estimate.
It was always a bold move by SG to ask for so much and the original terms gave the company all the control. It was a try on.
For mine SG has made a good move in selling Bulleye and buying into the Eagle Ford and surviving on what little cash the company has had since he took over in 2008.
What I am disappointed in is the production figures from the 1st 4 verticles, excuses aside. Maybe the best option is to push forward over the biggest challange and own our own horizontal well. As a current shareholder or a new noteholder by getting this well spudded and underway will be the fastlane to finding out if the PB acreage the company holds is any good. Voting down the chance to move forward doesn`t make sence and will probably hurt the share price and the company more than voting it through.
The choice appears to me to have a company with 3 billion shares that is going places or one with 2.5 billion who thinks it can go places if it had some money.
Last years annual report makes good reading if you what to place a position on which direction the company is heading.
For mine, the amendment is the peoples amendment. Now anyone can get the best terms the company has ever offered if they have just a $50k net worth and can convert that into liquid funds.
The question that needs answering is what are the alternatives to fund this horizontal welland then measure them against resolution 7
GGP Price at posting:
1.0¢ Sentiment: LT Buy Disclosure: Held
