Energulf Resources Inc. ENGFF

RE: UNX Exercise

[TCI_]

Britnick said...

BRITNICK27<strong>Reputation</strong>: A calculation of the weighted quality, performance, and participation scores on a scale of one to ten.</p>")" style="">1

7/26/2008 1:14:43 PM | | 271 reads | Post #23600499

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I have read a boat load of posts this morning and could not find any legitimate reason why UNX have exercised their option early.

Some have stated that $5 million is diddly but IMO that holds no water as $5 million to UNX is a significant amount of money when compared to their MC.

Others have said it is relative to the other blocks but there has been no activity there at all so pulling the tigger early makes zero sense.

The only reason I can come up with is that UNX have a high level of confidence in the progress of 1711 and getting this sewed up early was in the best interest of their shareholders.

NOW..the way I see it (this is TCI now) if UNX exercised early purely for the other blocks in Namibia wouldn't that be a significant and fatal risk as those blocks would be virtually worthless if Block 1711 is dry?? It just doesn't add up! If Block 1711 is looking profitable then they exercise early (like they did) so they can get all of their ducks in a row when the BIG NR comes out so they can get the best bang for UNX's SP. The other Blocks in Namibia that UNX does own now all of a sudden are very lucrative and worthy of significant amounts of capitol and investor interest.

This is how I see it!

TCI

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