EL,to me, that is a nowhere strategy. proving up reserves but...

EL,

to me, that is a nowhere strategy. proving up reserves but not having a plan to utilise them.

Fast forward to a year or so from now. Put yourself in a negotiating room with BG. You say I want $5/GJ for my GSA. They say no. What do you do hotshot, what do you do?

You have nothing because you have done nothing but jamn yourself in a corner.

Oh well, you do actually have SOME options, they are:

• accept a much lower gas price because you must (have I mentioned how capital intensive drilling wells are and how dillutive it can be to bring them on prodcution??)
  
• you tap the market for some more funds, more dillution
  
• you tap the market for some more funds to help monetise your reserves, which is even more dillutive and takes considerable time wreaking havoc on your sp
  
• the best option however is, you generate a bidding war for your assets. I dont think it is very savvy considering it is a completly uncontrollable destiny
  

When you compare the current path management have chosen above, I think it is very evident that this is a great strategic move in building a position to deliver the best to holders for the end game.

I have already said I agree that opening the register is a bit of a sucker punch to the faithful. But its your destiny and your control. In the time you have sat here bloggin, you could have opened a position at another brokerage and bought in as well.

Cheers,

SF