for those who dont follow close enough, we are backed by cash at about 9c,
and we are currently in arbitration, which is a type of court hearing, to determine a resolution of monies owed to us in the sum of something like 4m plus interest, but our case has teeth.
The operator, SPE who have as much already admitted they owe us the money, may have difficulty paying it to us, and we have in lou for the time being taken a collateral of another 22.5% interest in what is a 1000 bopd operation in waiting. (production development west kampar)
The issue is, that until we have at least operatorship transfered from SPE to us or another credible partner, the WK asset is like a duck on the water without legs.
Given SPEs financial woes, there is an outside chance that we could bring SPE into liquidation, and as the primary creditor, then sieze their entire assets, and then, we would be 100% operator and holder of the field.
So, who knows.
But the arbitration meeting met on the 18-19 feb, and then the courts would take a few weeks to think it over.
Maybe something is churning and about to froth up.
Keep in mind, that this field, could be something in the order of 2000 bopd asset to us, if we end up with it.
Enough said, even a 1000 bopd for a 20 mill mc coy, doesnt sit right, and it will take another 12m to develope the field even post outcome of arbitration,,,,but my thinking is that a 1000bopd producer, might well sit at arounds 100 mill mc, for no debt with upside. So,,thats a 5x for your trouble in 12-18m.
Sound right?
OEX Price at posting:
10.1¢ Sentiment: Hold Disclosure: Held
