Oromin Explorations Ltd OLEPF

RE: RE: terenga

[tony1969]

After studying this further,I believe that TGZ would wait until their stock recovers (unless they already have a done deal) before they announce anything.  Maya mentioned that they were trying to raise around $200 million for a combined cash and stock deal.  This low $1.70 share price would not help TGZ because they would have to issue more shares (almost 25% more than in the beginning of June) for the stock part of the deal.

Majors are interested but they know that OLE is running low on cash. They know this would force them either to raise or sell to TGZ.  They (majors) are in no hurry.  They can let OLE die on the vine and take them out super cheap in the future.  Again, Teranga is our bargaining chip.  If it was not for them it would be much harder to sell this property.  They (majors) can let TGZ bid on OLE then if they choose make a higher counterbid. They can also let TGZ buy OLE, fully integrate themselves for a year or two then buy them out and avoid having to go through all issues that come with a merger or buyout.  This second scenario is what I believe will eventually happen. Chet knows that both companies are worth much more combined than they are separate.  He might choose to bite the bullet now by accepting a low bid and structure a stock deal that will let him benefit in the developement of the property. Comments?