For those that mistakenly believe that Pass are getting the...

For those that mistakenly believe that Pass are getting the better deal out of this merger and quote the deal as a simple exchange of their monthly $35k for VILs share of Bongo, how about we lay out the facts for all to see.

VIL currently has:
- Fausse Point 45%
- Bongo 9.375%

Pass is handing over:
- Fausse Point 27%
- Bullseye Miogyp producing well = $35k per month
- Bullseye prospects (Miogyp, Camerina, Marg Varg) 10%
- Bowtie West 18%
- Silverwood 30% (option only .... additional cost)
- Cash on hand

Pass holders will hold 35% of the combined VIL entity. This means that VIL holders maintain an interest in 65% of VILs existing assets and gain 65% of Pass assets described above.

So the value of the deal to shareholders of both companies is established by determining the NET transfer of assets between the two parties. As you will see below, VIL holders give up very little but gain a lot. NET transfer of assets is as follows:

VIL holders transfer to Pass holders:
- Bongo 3.28% net

Pass holders transfer to VIL holders:
- Fausse Point 2.5% net
- Bullseye Miogyp producing well $22,750 per month net
- Bullseye prospects 6.5% net
- Bowtie West 11.7% net
- Silverwood option
- Cash 65% net

So for those confused I hope this makes it easier. Pass holders are only gaining 3.28% net of Bongo. Thats all.

VIL holders paid approx $885k for their entire 9.375% stake in Bongo and are exchanging just one third of this small stake for all of these net Pass assets and revenue listed above.

Each VIL holder ends up with a slightly increased stake in FP plus significant new revenue plus a raft of other assets with significant potential. Bargain of the century for existing VIL holders I believe.

Now Woody, Investor, charl etc do you still really think Pass holders are getting the better deal ? I hope this helps clarify the situation.