News: PCL Raven Energy Signs Agreement With Pancontinental Oil & Gas NL, page-2

Well that was a disaster of an acquisition.

Touted at the time as being "transformational" for shareholders it has been an unmitigated disaster.

So we bought Bomboro (10% Dempsey and 40% interest in Gasfields) for $2.8m (all scrip) with 1.4bn shares issued at 0.2c. This was almost 40% of the new holding of PCL.

Original plan a year later was pretty good in that we sell 40% of Gasfields (and keep Dempsey) for pretty good consideration:

$300k in cash
$1m in shares - 555,555,555 shares in Raven at 0.18c / share
Plus contingent payments of $0.5m on first economic flow of gas, $5m on declaring a 500 bcf reserve and $10m on a tcf reserve (would only be $5m if already declared the 500bcf reserve),

So pretty good at this point. Acquired for $2.8m, sold off the higher risk unproven stuff for $1.3m and contingent payments of $10.5m. I like it.

Then the release this week.

We've now sold 100% of Bomboro so also includes Dempsey. Now its no upfront cash and only 295m shares ($0.5m) in total consideration. On top of that Raven have confirmed that the contingent payments are due to Bomboro now which is 100% owned by Raven so PCL no longer have access to the contingent payments.

What a complete crock. How the deal collapse so drastically in just 6 months when in that time there have been no ASX releases even about the US assets. What an unmitigated disaster this is.

However then we get the cherry on the top, John Begg steps down and funnily enough has now been appointed by Raven as Business Development Manager for California and stepped down from being CEO as he has other interests (maybe that would be the cheap assets he's just helped Raven acquire). The extra cherry on the top is PCL also have to contribute to a freaking share issue by Raven.

Great work there Begg in screwing over PCL shareholders.