Stuck in transit......man you guys have been busy commenting.OW,...

Stuck in transit......man you guys have been busy commenting.

OW, my take is this. The certified reserves are not going to be available before the OA's expire so the price kicker is still a little way off. Cash at 31/12 was $2.3M with approx $1.1M to go out this quarter leaving $1.2M in the bank. 

That would have been ok if the timing of the reserves report was pre the OA expiry date but given the pressure tests are later than initially thought the company needed an alternate cash strategy. So a CR plus extending the OA's makes sense to me.

Secondly there was a risk anyone dealing on a gas sales agreement/ farm-in/ debt funder could squeeze RLE if they perceived the company short of cash due to the timing of reserves and OA's early expiry. This strategy would stop us being a price taker and allow us to negotiate on even terms.
Personally I think CR's suck but I can understand this one given the liklihood of the reserves report exceeding the date of the OA's expiry.

Thanks to Geo and Chambers for the insights regarding the Cr and oppie extension.