Will need to wait for the rest of the information to decide if the is good. Key thing is there are a lot of annoyed people due to the 180, so management better hope they are right,
I'm not entirely opposed to this either,
Pending on the life of the current well's, the company will at least have the ability to pay their bills plus more and still have some money in the bank.
Apparently from what they are saying average of 300BOE/d, means that from 1st of Dec to Jan 21st, there is meant to be roughly 15,600 barrels to sell.
Obviously a lot of unanswered questions, but from a top line strategic perspective: - Money is coming in - Admin fee's are being paid - Risk has been shifted from 1 key area, to 3 areas - Since money is coming in, there is more of a capacity to drill - Higher probability of more producing wells in eagle ford - Less of a heads or tails play over in WA
Is the price right? time will tell.
Another article for those interested: http://www.streetinsider.com/Litigation/Magnum+Hunter+(MHR)+Sells+Eagle+Ford+Assets%3B+Enters+Settlement+with+Hall+Kistler/8967808.html
NSE Price at posting:
11.5¢ Sentiment: None Disclosure: Held