How right you are whisky. They NEED criticism to give them further opportunities to satisfy their addiction. It has been an absolute tsunami from those guys hasn't it? What should that tell everyone??
Now, Whisky, let's not waste your usually intelligent comments on non productive stuff for genuine shareholders.
Some here, apart from "them", aren't too sure about the wisdom of this latest deal and on first flush some of those numbers look a bit weak.
What appears to be a bit of a query is that 52 bod from 22 wells. But, these are wells that have been pumping for over 6 years and have probably reached their maximum depletion point. They started with rates over 1100bod before the decline started. I haven't been able to determine when those rates did start dropping rapidly to reach their present levels. The region has a history that these wells can keep pumping at these rates from 20 to 100 years.
So what do shareholders get from this deal?
A property that cost over $12 million just 4 years ago, for $2 million, including a difficult to exactly assess what all of that infrastructure and seismics that goes with it is worth, but, certainly of significant value to the company.
They get an income from those 22 wells which, virtually at bugger all cost, will spit out over $2,000 nett, PER DAY, id infinitum. Will pay the bills for a very long time.
They have ready made targets to drill another 6 wells whenever they can organize it, which "could" generate an initial flow rate in the region of the average initial rates of those other 22 wells, but, certainly more cash, more income.
It has effectively cost the company nothing, albeit with dilution to existing shareholders which goes with these types of relative start up companies.
Existing shareholders have the opportunity to take up more shares @ .006 to restore that loss of equity.
AS I see it, shareholders now have a completely transparent plan, simple and logical, upon which they can make a reasoned decision.
The only "negatives" at this stage, where we still have only ONE other well result, is all based upon OPINIONS and conspiracy theories, "realism" won't take effect until at least the end of 2017, either way.
Existing shareholders and potential ones have no one to blame but themselves if they make the "wrong" decision, again, EITHER way.
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