IT IS A JOINT VENTURE DEAL..... Management did not walk away from their Vast holdings, they diluted a share of the property. I know that LFD was looking for a joint venture whom had deep pockets. They could have financed the drilling in two ways: massive dilution or diluting the property. The Sunday times is an English newspaper so price of $ 70 million is either pounds or U.S. dollars, certainly not Canadian dollars. Stan Bharti gave $ 10 million in charity in December 2011 does he seem that desperate to want to get out. He worked hard to put the right people at the right places, getting this hot property and waiting for interest to build over three years. I am sticking with my view that management obtained 38 cents per share in cash for 40% of their Chia Holdings. LFD still holds 60% of it and now has the funds to drill and pay capacity payments. Negotiations went down to the last moment, probably in December 2011 Genel wanted to go hostile but then reflected that it is better to have a friend than an enemy. They tried to buy out LFD whom refused and demanded a Joint Venture. At last minute, Genel caved in since they want to have something positive to offer to conference. LFD is cooperating which means that deal is favorable to them so it is a JOINT VENTURE. I believe that LFD will build the Chia property into value down the road and then sell it for much more to Genel. I know that management was not interested in any buyout unless if price was too good to refuse.
JMHO