John i agree with your thoughts ......and would add: 1. chk very...

John

i agree with your thoughts ......and would add:

1. chk very carefully for "out of the money" convertible notes
2. if any debt - check carefully the "terms" (editdax to debt at var oil prices, "reviews", hedging requirements, and linked to project or corporate)
3. hopefully the production asset has some scale - so that when the tide (eventually) turns - there will be some upside for holders
4. some other asset that has nil or hidden value inside the co (like a shale play - that the market is perhaps valuing at nil or negative)....

the follwoing is the "sort of instrument" that the big investment banks sold to "retail" punters .......





http://www.scribd.com/doc/250069565...ficate-Plus-Notes-Linked-to-WTI-Crude-Oil-BNP

ALL of the big banks sold this crap to the unsuspecting ..........

this does imply that there wil be NO CAPITAL available to almost all in the E&P sector (or expect very onerous terms ....)

rgds
Value_Hunter