Canadian Imperial Venture V.CQV.H

RE: RE: RE: Four Horsemen of the Green Point Shale

[myamigo]

stateside said ..."I'm scared for you..."

 

Thanks for your  concern there stateside but I can take care of myself.

 

CQV has already  dealt with the negative aspect of a deal which ultimately resulted in giving away all of the rights to the play in this area. The share price dropped from 0.05 mid-summer to a low of 0.015 shortly after the deal was announced and it languished there until they indicated that operations would resume on 3K-39. CQV's present value is tied to the successful development of EL1070 and EL1120 and there are no more potential "gotchas" for us to contend with now and that's why we're holding onto our shares. NWN has now added to this by kicking in 50% of their rights to EL1097R (an even larger area than we have now) but it has only cost 1M shares (+ $1M drilling deposit & 1M warrants of course). From a CQV'ers perspective this is great!

 

NWN had 100% of the rights in the area but were in a weak negotiating position by obviously being unable to fund development. NWN had no choice but to make a deal with the devil and it only stands to reason that it will negatively affect share price. NWN's price was run up since December perhaps on speculation that a different deal would be announced.  If they announced that for 50% they were getting a JV partner that would drill a well to depth to evaluate the underlying formation then I'd consider that a good deal. Instead they sold the farm. Consider also that all bids 0.10 and over  were hauled off the table prior to the halt and the stock was trading above 0.24 for over two weeks. I think the bids were cleared because they knew something was coming.

 

I'm sure this will work out in the long term but in the short term I still think NWN will see a correction.

 

Just my opinion of course ;-)