RE: RE: RE: RE: RE: Notes It is important to realize that the bonds are UNSECURED AND NOT CONVERTIBLE.
This indicates that they are a pretty high credit quality.
We will know their debt position when Q3 comes out but my interpretation of this
issue is that it merely increases their flexibility. They have shown a very good record
of successful drilling and have a large number of drilling locations. With the huge amount
of drilling that needs to be done LEG wants to insure that they have lots of credit that
will allow them to fully drill all their prospects especially in the event that the oil market
heats up with higher prices. This could well happen given the cutbacks by major companies
such as SU, TLM and others. Their drilling success will also bolster their reserves at year
end which will increase their credit worthiness. In the oil patch the name of the game is always
to borrow money at one rate to invest at a higher rate. With today's oil price LEG's wells are
very profitable and any rise will make it even moreso. With such a successful drilling record
we want them to DRILL BABY DRILL !