RE: RE: RE: Long term funding option?noangusm, your enthusiasm is appreciated and I truly hope the shareprice skyrockets, but your denial is somewhat puzzling.
Closing your eyes to the fact that TSU are now in a position that they are going to have to scramble big time to find the funds neccesary to complete Karl, won't make the shareprice jump. Management has already said it won't be doing anything until Q3.
Those discussing consolidation and dilution are unfortunately being labelled as bashers by a few posters, and yet the CEO has made it clear in the December 2010 TSU presentation that "HE PREFERS TO HAVE 80 TO 100 MILLION O/S" in order to attract financing and jv interest.
What part of that are you missing, as we sit at almost 500 million shares outstanding, a market cap of 36 million with a producing asset in QBR, and an unproven asset in the Ukraine. Incidentally, I believe management has stated they have approx 32 million in current assets. I presume this number is somewhat inflated...
So I ask you, who is going to loan a company money that's assets equal its market cap and its great hope Karl 101 is a long ways from becoming commercial? A lot of managements 2011 forward looking statements were based on the Karl 101 proving successful.
As far as a joint venture, you either weren't around in 2008 or you have a short memory.
TSU had a promising 50 / 50 joint venture with Rohol Aufsuchungs Aktiengesellschaft ("RAG") (Shell owns part of RAG) for all of their Ukraine assets. The j.v. company was called Scythian Energy BV
Drilling was initiated on the Karl 101 well and reached td when they got the string stuck, and couldn't retrieve it. Shortly after, RAG wanted out of the JV. They just walked away, and yet they had a shot at 50% of all the TSU Ukraine assets, not just Karl. Why?
TSU responded that they were in discussions with several companies that expressed interest in joining TSU, yet none signed on the dotted line.
So now here we are in 2011 and a sidetrack well has been completed by TSU going at it alone, financed largely by the cash recieved from selling their Eaglewood shares (9.9 million). Lots of problems encountered again, just like the 2008 well with dissapointing results once again as the eventual outcome.
So ask yourself one question - What will TSU have to give up if they can find a joint venture - 70% of Karl?
As far as a big loan from the Ukraine government, that would be awesome but my guess is they have a pretty good idea what the Karl 101 will yeild, considering there has already been 9 producing wells come and go in that field.
I sincerely hope you are right and I am wrong, but I am basing my posts on past experience with TSU. What are you basing your posts on?
jmo