RE:RE:RE:RE:RE: Article... an engineered market collapse of oil pricebojangle3 wrote: Good post petro, a lot like I think of the whole thing...
In another six days we will know about the whole deal unless HOC wants to extend to march 30. If they do than they will have to put up more morey which will be forfeited at the end of march, at which time the whold deal will be called of and TBE will be back on a new chopping block. If the deal ends and the money is forfeited, which could be as much as 35 to 50 million dollars. If this happens, which I don't think it will, than we would become a going concern again..... What do you think Petro ?
HOC is entitled to extend the closing date, if regulatory approval has not been approved. While the Investment Canada group doesn't care about small deals like this, perhaps someone else in the Federal Government, has been tipped-off to check into the situation, and might have concerns with the number of sales going to Chinese funded companies.
Another regulatory agency that may have concerns, would be those that deal with well abandonment liabilties. They may say that TBE has to put up more money, to fund their liabilities, if the well licenses are transferred to a new company. That is one group that has to speak, and may say that TBE can't be sold in the present form, until more wells are abandoned. HOC could walk from the deal, and would be entitled to their deposit, if something like that, was to occur. The whole sales process would start again.
These companies need to get more creative on how they do business. If they have alot of abandonments to do, they should be buying a service rig, and figuring out ways to get their costs down cheaper. There was no plan on that, in their operating strategy.
I sometimes have this dream, that this whole TBE situation is like the Michael Douglas movie "The Game", where a guy has some wild night out with a whole series of crazy events, and is driven to the point of a suicide jump, then it is shown to be an entire set-up by his friends, to celebrate his birthday.
Is the whole HOC deal, a set-up like in the movie "The Game", and just a way for TBE to stall for time, waiting for a market recovery, then the previous board steps in behind the scenes, to show that there was some elaborate deal to sign-back HOC's interest to TBE, in exchange for a good chunk of interest money, on their purchase deposit, which then allows TBE to emerge as a going concern, in the higher oil price environment?
Then I wake up...