Oromin Explorations Ltd OLEPF

My 47th TGZ scenario.............

[tony1969]

TGZ pays Bendon $125 million in cash.  They can easily do this.  They had $45 million at the end of the year and could easily borrow ($80 million)  the rest with the cash flow they will show after their hedge is paid off by June and with the massive increase in production they will have with OLE.  They give OLE $110 milion in stock because they already own about 19 million shares. I am using a low but apparently realistic $250 million as a buyout price for the whole OJVG.  Badr's stake of maybe 3% I will not bother calculating (you can take maybe 5 cents off of the estimates per share).  $110 million in stock divided by the 118 million shares that TGZ does not own gives us $.93 per share for OLE holders plus the opportunity to grow with them.  If TGZ can crawl back to $1.50 by May or so then they would only have to offer 75 million shares at $1.50 to buy public OLE.  This would dilute them by only 30% as far as their outstanding stock (245million / 75 million = 30.6%).  TGZ can easily pay off the Bendon loan within a year or two (with their increased cash flow) and only dilute their shareholders by 30% instead of having an all stock 160 million share 65% dilution. Even if TGZ only gets back to $1.35 they would only have to offer 81 million shares or a 33% share dilution.  This can be done even in this terrible environment.  TGZ does not want anyone else owning OLE.  I do not think they can afford to let anyone else own OLE.  Remember Senegal gets their cut too. Comments?