i have been going over all the permutations in my mind and on paper as to the trading halt, re-instatement and lack of market information...
As mentioned in some of my previous posts, i recall speaking with THK recently (less than 3 months ago), when it was categorically stated that a cap raising was not required. This was not an off the cuff statement. Further to this, announcements after this point in time confirm the company's desire to concentrate on conventionals which will avoid cash flow problems...
Conclusion: This is not a cap raising... 99.9% guaranteed
From this ascertation, we can be fairly safe to say that the announcement will be positive. Given that it is not a cap raising, we can assume that the following are possibilities: (not in any particular order)
1. Acquisition of new leases
2. Implementation of the advanced technology ahead of schedule for the non conventials
3. Farm in agreement which sees the conventional production expedites without the need for large cash outlay.
4. Devon takeover
5. Advanced gas flows on some of the devon fields in which THK is a particapant.
6. Upgraded cash flows...
thinking about the wording of the ann, this is a "market transaction". That been the case, I would right off options 2, 5 and 6 from the above... That leaves us with new leases signed, farm in or takeover...
So, i could be wrong, but anyway i look at it, the news is not going to be good, it will be better than that... all of the above options are fantastic news and as previously notified to the market, cash flows were expected to increase across the first quarters of this year which means the stock is still tremendous value at current prices...
can anyone think of anything else? I really have not done well with THK and have been a believer, which in some cases, causes a blinkered effect, narrow sightedness if you like..
I feel this time though, I have got it right in saying... "bring it on baby".........
THK
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