GREY:STPJF - Post by User
Comment by
pricecheckon2on Nov 23, 2007 4:34pm
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Post# 13859845
RE: fact a mundos
RE: fact a mundosActually the dealers can buy the stock after a reasonable amount of time for the book to be open to the public. In the event that it is not over-subscribed than agents will buy the stock, on the assumption that they like it afterall.
In the case of a bought-deal as was this one the lead agent sells the stock or is forced to buy it with the firms capital. STP is guaranteed its money either way so to the company it doesn't matter. Given the oil sands nature of this deal I would imagine it sold reasonably easy despite the reserves mess, weak markets and everything else going on like royalty adjustments.
They now have the cash, time to go drilling. The ground will be frozen in a month and the rigs should be rolling around. It will be most interesting to see what they find. High quality stuff can fetch $0.80 - $1.00 a barrel while the thinner stuff gets signifcantly less.