Congratulations to the management for a well executed most imaginative deal. Before we criticize, let us look into the benefits of the deal to us, REV shareholders as a whole.
The main benefits of the deal are:
1. REV has immediately received in the pocket 10 million shares of Euro Gas capital stock with tremendous upward potential. Remember that recently Euro Gas has traded as much as four million shares a day in Europe and appreciated almost 400 percent in a few weeks time.
2. Euro Gas and or through McCallan is owner or potential owner of many oil , gas, uranium and other energy and mineral related projects in Canada and Europe.
3. Euro Gas will pay Regent a total of $3-million in cash in three trenches, $1-million on or before the date five months from acceptance for filing of the agreement by the TSX Venture Exchange, $1-million on or before March 31, 2009, and $1-million on or before Sept. 30, 2009.
4.grant Regent an overriding royalty of 1 per cent of all gross proceeds received by McCallan's subsidiaries from the sale of oil, natural gas and coalbed methane from the concessions it holds.
Safe Heaven for REV
Should Euro Gas fail to satisfy the requirements to exercise the option, Regent is entitled to keep any shares or cash received from Euro Gas to that point. On exercise of the option by Euro Gas, Regent will assign, and Euro Gas will assume, Regent's interest in all of the agreements entered into with the principal shareholder of McCallan with respect to the purchase of the shares of McCallan.
Multiple Advantages for REV:
1.By executing with master agreement REV has negotiated itself out of an albatross, as one can imagine dealing with Poland and other European government agencies can be a monstrous of a job. REV and its shareholders can be beneficiaries of all the gains made through the Euro Gas discoveries worldwide.
2.Wolfgang Rauball is a master deal maker and has a proven record of raising millions or hundreds of millions of dollars of finance required to put this oil and gas fields to production.
3. REV is now free to put its full effort to the tar sands project, Red Mountain gold project etc with great success.
I am a large shareholder of REV and I wish all you well in this investment whether you agree with my opinion or not.
In the end I will be proven right.
Lucky5