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Silk Energy Ltd SLKEF

Silk Energy Limited is a Canada-based resource company. The Company acquires undervalued oil and gas assets in Kazakhstan. The Company, through its subsidiaries, owns a 50% interest in the KMG Ustyurt license (Ustyurt). The Company focuses on exploring and developing Ustyurt, an onshore oil and gas concession comprising approximately 6,500 square kilometers in the Caspian Sea region of the Republic of Kazakhstan.


GREY:SLKEF - Post by User

Bullboard Posts
Comment by millrighton Feb 24, 2008 9:36pm
125 Views
Post# 14535993

RE: Counting Down to May 8

RE: Counting Down to May 8

wilburrr,

Hate to say it, but I think your word selection "counting down" may well describe the price action between now and May 8. I sure don't see what could be on the horizon in March and April that would move the price up, let alone double it. Even quite good drilling results back around the first of December have done nothing to stop the downward trend for ISM. The weak results to date in 2008 sure won't help. Its getting so that even being able to put finishing touches on a July 2007 dividend and reorganization would be considered a hell of an accomplishment - or maybe being able to schedule a meeting - but neither one of these are company-making, price-doubling events. There could be a bounce if it was learned this meeting delay and Texas Director rumour was linked to a management shake-up, but I think it would take longer than May 1 to get the benefit.

I think those warrants are going to die on the vine, and I think the next $6 crop will meet the same fate. Wailer counted the likelihood of the warrant proceeds in his cash calculations recently, but when challenged he had nothing to say. I think he realized that he was just pasting a company update that was outdated when released, and completely irrelevant now.

As for wailer throwing out the possibility that the warrants would be re-priced, I was going to say that was a dumb idea and would never happen - but after considering the retroactive dividend and restructure, I'll just leave it at being a dumb idea.

This is that period of time in the company history when you have to live with the long range plan that was chosen - to define a resource that would be attractive to a take-over company at an amount that was attractive to ISM shareholders. The company has not defined a resource of any size, by the standards that an acquiring company would consider. Even if it had, it does not control its destiny, it can spend years being a mail order bride with no suitor. Right now, it hasn't done enough checking to be able to tell the potential suitors that there's a bride under that clothing.

I don't mind being in a company that has missed out on all the excitement over expectations that fizzled - those interested parties dropping by at the PDAC booth, the Russians drinking vodka at the Big Table in the Centre of Canada's Universe, etc. I take some comfort in being in a company that's controlling its own future to some degree, proving up its resource by industry standards, and selling its resource [in smaller quantities than a hoped for take-over] in return for operating cash flow. It hasn't got all the pizzazz of trips to Europe and meetings in Moscow - but it has that nice little feature of cash coming in, instead of cash going out.

Not meaning to depress you Wilburrr, but if you hold your breath waiting for reality in an answer from wailer, you'll bust a blood vessel.

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