RE:Going once, Going twice......Gone!As an investor, my investment thesis starts with good management of course. But also, it seems there should be a shift away from reserves as a (exit) strategy in order to focus on cashflow. First, that will hopefully translate into spending less on infrastructure and delineation and more on drilling and completion. Second, if they can buy equivalent asset and reserves for less, that works too. Third, a merger or acquisition is not a bad idea to increase size and scope and reduce costs (the future is not bright for small niche players it seems). Or all three.
Since they will have ~$200M cash to work with post closing (exclding debentures and working capital deficiency) and no bank debt, it seems they will be in an enviable position relative to most of their peers. A lot of them can't capex that much even if they wanted to given their limited access to credit.
GLTA.