RE: RE: Two Very Important Questions:I agree with you skier on the point of getting others to believe the potential of the story, after all that's the reason the stock price is where it is. I remember just a short while ago, the stock was below 50 cents and after Tullow announcement, it more than double the same day. This is part of my concern here, why would management stop the momentum of the stock so quickly (ignoring the halt by TSX and news release by CGX warning of the high risk) announcing a PP at 70 cents when the stock was already 90 cents and going higher, Why not wait a little for the big Tullow discovery to digest in the energy world and then do a PP at 90 cents minimum (that would have at least matched their last PP) -- it's not like they are able to get a Rig the next week or even month to drill Eagle Shallow. Of course they could have gotten 90 cents or higher if they showed some patience as we know the CEO mentioned he was receiving a lot of interests after the Tullow discovery. Could have been a lot less dilutive to shareholders, after all don't you strive to do PP at higher price than your previous PP price -- they definitely had an opportunity to do the PP at 90 cents or higher if they really had great confidence in their acerages. Does this management really have shareholders best interest?
The part that really got to me was who they offered 20% of the company to for $41 million -- Pacific Rubiales, what offshore technical skill can they bring to the table? Why didn't they do the placement with a Strategic Partner? I would think some where down the road, they will have to get a Strategic Partner that will further dilute shareholders. I could be under estimating Pacific Rubiales but when it comes to offshore drilling, you want to make sure you have a really strong technical team.
Also, what's your take on the Shallow Eagle, who will be the operator? If it's CGX, what will a good technical team cost them?