RE: Annual Report notes
Oilmoney, you raise a number of critical concerns that I have been trying to get my head around regarding this company and its PSC.
Especially now, as you mention in "Concern #4", being so close to "payday" - so to speak - or at least well spudding, why didn't Soros or RBC step up to finance this leg. Further, why couldn't LFD secure financing at any better than the 52 week low and with terrible warrants ( I have another theory behind this and will discuss in subsequent post). Do these entities see further risk as in not technically fulfilling obligations of the PSC? Could we hit big and the Kurd or Iraqi gov't. say thank you but you failed to meet the conditions of the PSC so we'll take over the well now?
You will note that it says, "the Company (that being LFD) amended the payment schedule". It does not say that the agreement was amended which would require the participation of all parties. Why would you set up a schedule for these "capacity building payments" before you even drill a well and even know whether you found oil or not anyways?
Digging through LFD's documents, I cannot seem to find any answers including as to why we agreed to carry Petoil's financial obligations which increases the precariousness of our own burden (albeit Petoil is supposed to pay interest), and so will write the company. I hope you will do similar and if either of us gets an answer we can post.
This board scares me as no one seems interested in finding answers to these critical matters and the best anyone can do is fire back a one line pump or bash. Further, the most important post in a few months is rated so poorly.
Greg