Even if they can get $140m for the Ark (which would surprise me if they can) they are still in deep trouble.
The balance sheet still has a valuation of $728M for the oil assets plus intangibles and there is also a negative net asset amount of $42M that needs to be recovered.
So in simple terms just for the company to be worth nothing the existing assets need to be worth $770M.
If they sell the Ark for $140m that would leave $630M.
The only real assets left would be the US oil assets and Alaska and I can't see those two assets being worth $630M.
They also still have the UCG technology but realistically who would give them much for that.
All this sale will do is keep the company afloat for a bit longer which will enable the directors to keep getting paid.
Lets not forget they are still burning at least $80M a year in cash and that needs funding from somewhere.
Shareholders should be asking where is the long term plan to generate excess income over costs.
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