Thanks Etherazer, I'm a long-time holder that has had the tenacity to average down big time under 2c.
This deal gives PGS the opportunity to generate near-term cash flow potential, from early oil (if found) & longer-term on any future hydrocarbon discoveries . The way I see the SXY offer is they liked what they've seen to date in Cordillo 3D & have decided to give PGS quite an array of "bounses" of up to $17.5M if oil is found, plus the $5M in cash up front (so it locks in the 80%). Then adds $45M in exploration expenditure ($9M free-carry PGS). If SXY hits oil - watch out PGS gets all the bonuses + 20% of everything that comes out of the ground.
I know they still have to hit soemthing, but why the hell would SXY give such an array of extras - if they were not going for the kill on an oil pocket or too across the proven western flank. Still under 2c, not for long I think, those that keep selling, thanks I'm sure Etherazer will join me in picking up a few more....GLTA
PGS Price at posting:
1.9¢ Sentiment: LT Buy Disclosure: Held
