Don’t post very often, as mostly others have a handle on what is...

Don’t post very often, as mostly others have a handle on what is happening with the company. I read most of the posts when I get the time.

I think in my last post, I communicated reasonably well what I thought of the proposed agreement between the three parties, namely ROG, CMR and ERM.

I cannot see any way that ROG can take any positives from the agreement except the fact that they will be able to stay in business. (Hopefully to fight another day elsewhere)

The thing that really gets me going, is that no matter what the outcome of the proposed drilling for gas on either or both tenements PEL479 and PEL457, the most we can get for them is $10M.. We have not even explored them at depth down to the Koukandowie and Raceview formations .

If they had made this agreement AFTER the Talma pilot hole, (assuming a positive result... .............and after all, that’s why we are all here hanging on, because of the possibility of commercial gas) we could have negotiated a much higher price for the tenements.

The company has been getting by on money from loan sharks YA Global, and clearly they were unable to raise the money to hire a rig and put down the Talma pilot, and that is why we have this “pending agreement”. Were RG and Co given an ultimatum? (my assumption)

Gaspew, I have read your well argued post, but I fail to see how ROG’s share price will rise (boy, I would love to see your 2c) when they have a prior agreed value for their 20% component of the proceeds, assuming that the results of the drilling and pilot are good........unless punters buy in not realising that ROG’s share will not progress beyond $10M..

Unless as Newland has stated, “am I missing something”, we will just have to hope that there is something in the detail of the agreement that we are not aware of that will give us some hope.

Regards,

LL

For those that haven’t seen this article, it is particularly pertinent to this topic!

http://www.thebull.com.au/premium/a/29578-the-next-big-thing---the-gas-revolution-and-stocks-to-watch.html