Long Run Explor Ltd Ord WFREF

RE:as time drags on???

[wilwal]

The New Star deal took two months to complete.  Sinoenergy didn't reveal their identity until closing.  

This is a bigger deal than New Star so it has a few more hoops to jump through.  For one thing, it has to be approved by FIRA.  That is supposed to be a 45 day process.  I suspect they won't apply to FIRA until the shareholder vote mid-February which is why they are looking at April closing.  They have several approvals in China as well, including approval for the capital to exit the country. Since the capital isn't huge as this deal is mostly debt, that shouldn't be a problem.

I would watch for the $5 million to hit the LRE bank in late January.  If that happens, it means the banks are on board and the deal is highly likely to close.  Chinese hate to part with a nickel but when they do, they are all in.  After that, it is a matter of shareholder and deb approval, then FIRA and Chinese approval.

I doubt they are playing any games on delays.  These guys are thinking long term.  If the buyer is Sinoenergy Corp, they are big into LNG and plan an LNG plant near Edmonton for shipments by rail to the coast and on to Asia.  LRE would most likely become the main nat gas feeder of the LNG plant.