RE: the stock price is talking Good post cinco although I really don't think that Genel would participate in any financing with Longford as they commented after the Sky news leak that they are negotiating a purchase for an additional 40% stake in Chia.
I think everyone is still very leary of Longfords management team and that is reflective in the share price due to the disclaimer by Genel that there is no certainty that they will agree on a deal.
Longford Energy has had a couple years now to produce oil as the operator, and to date they haven't shown much more than a ton of dilution through all the recent financings. No need to look any further than Vast, where the same group of execs have blown tens of millions with exactly the same result as Chia - nada -
Without Chia Surkh, Longford Energy is nothing more than a shell once the shareholders are looked after.
It is clear that Vast is in need of serious cash flow if they are going to continue in Kurdistan, so here are my thoughts out loud. Ahmed Said and the boys at LFD have burnt a lot of big fish through financings lately if they don't get something for Chia. I believe the average placement was in the .20 cent range the past year, and in order to count on these guys again for possible financing for Vast, they will at least need to get all their money back.
I am not as optimistic as the posters claiming $1.00 but I do think Genel will likely pay in the range of 25 to 30 million pounds for the full 40% interest in Chia. Niko paid $9 million to the same executive team for 12.5 % of the Vasts interest in Qara Dagh
Although Longford claims that their assets are worth 80 million, this amount will ensure that the major shareholders like Aberdeen, will get their initial investment back and Ahmed Said, Stan Bharti, Slotboom and the rest of the team can move on to their next venture, likely being the backing of Vasts 25% interest in Qara Dagh.
We will soon see what transpires. Friday is going to start in London in 6 hours or so, and by the time we wake up, I am hoping for a halt prior to the open tomorrow morning to a least clear things up with regards to Genels intentions.
I really think Genel knows the Chia Surkh Oil field is going to payoff big time once they get some of their experienced people running the show.
jmo