RE: News ReleaseIf you read the company presentation, you will realize that this mgmt team wants to aggressively grow the company. They have grown so far by assemblying existing production. They didn't grow thru the drillbit.
So how do you assemble production assets that are too small, noncore or uneconomic for a larger player?
You pay cash!
As shareholders, we don't mold company policy. "Why pay cash if we don't need it" may be a plausible idea to a shareholder but I don't get the feeling that that's how this mgmt team wants to proceed. I think mgmt also realizes that their longer term chances are much better if they are bigger. As on offshore producer, PYR.v is a flyspeck. Look at their partners on those platforms. They got this far because of previous connections. I think they feel they need to get bigger quickly to help ensure survival and to increase cashflow so that they can leverage themselves up to a higher level that will allow them to participate in future drilling in the GOM.
Bobwins