OTCPK:ATGYF - Post by User
Comment by
zorgon1on Jan 20, 2009 12:04pm
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Post# 15715973
RE: asset sale?
RE: asset sale? It's my understanding that the company is just looking at options. They have no commitment to sell any fraction of either project but they are just testing the waters. While they currently have no debt and maybe $50 million in the bank, they don't have sufficient cash to fully fund development of both projects and they are being prudent in assuming any existing L.O.C. (read Bank of Scotland not Royal Bank of Scotland) could possibly not be forthcoming - look at poor Oilexco. I think it prudent that they choose to play this conservatively given the possibility of what could happen in the worst case scenario.
In any event, at $40 oil, why would they want to push ahead? While the cost of production has probably come down significantly since the last estimate, there are few new, North Sea projects making any significant money at today's commodity prices.
I've been in this stock prior to their first well in Australia in 2002 but for now, I'll reserve judgement on this move for the time being.