Time Running Out For PAA The 64 million dollar question is whether PAA are going to complete a full feasibility before the extended July deadline, thats all that matters now. If the answer is no, PAA has no other option but to offer OK what OK deems as acceptable in order to prevent the terms of the JV being breached and the entire project returning to OK in July. PAA is never going to let that happen, unfortunately for us, they have done the hard work, why let it go now?? I am praying PAA can't get the Feasibility done before July deadline.
Cope has hinted that Orko are not expecting PAA to get it done (and OK are expecting a takeout closer to April than July), which means every day that passes means there is less time for a deal to be agreed with OK. If the feasibility is not going to be done by July, strictly speaking OK could refuse all offers, wait for the July deadline to pass and automatically takeover 100% of the project (subject to paying $8m, I believe.). If the feasibility is in by July trump card with PAA because they can make an offer, if OK rejects it PAA just sits tight and OK shareholders get nothing soon. If that is the case we might accept $4-5. If the feasibility is not going to be done we have the box seat and PAA will have to agree to what we want or lose the project come July (great baragaining position for OK).
It makes sense for PAA to at least wait until the new 43-101 comes out. Then it all depends on whether the feasibility will be done by July or not. If not, the clock is ticking and both choices left for OK are great:
1) wait for an acceptable offer to arrive before July.
2) or if an acceptable offer does not arrive, take the entire project back in July.
PS - If it is common knowledge or PAA have said that the feasibility will not be done by July, why would we bother offering an extension, surely PAA has to take us out before the April deadline as it seems strange to offer an extension to a deadline which everyone knows won't be met. Of course OK out of goodwill may give them the extension to allow them further time to prepare their bid. When Cope talks about 'PAA playing with fire', that is a clear sign that the PAA is not going to arrive and an offer is coming, but the longer PAA waits the shorter the time for the deal to be agreed.
Apologies for being so long winded.