RE:RE:Two outta three aint bad .......I agree, it doesn't look good for shareholders. My guess is I think this was probaly agreed to when the original financing deal was done. What the 10% does it allows him to finance his whole deal at a lower rate and the 10% will cover all of his financing costs for the deal. So in a sense he's in for free. His only exposure is that he would have to guarantee his financing and with his wealth he can. This is similar to how Warren Buffett does his deals. A good deal for him not so good for the company. However at the time of the original deal who knew the price of oil would be where it is now. The deal did allow the company some independance and they are not like a lot of other juniors who as part of the financing either had to commit to selling assets to pay down debt or hedge most of their production well into the future.
I think most of their hedges have or are expiring so with the present price of oil (if price holds) CJ should generate huge cash flow which will make the 10% look small in comparison; but this won't show up until 3rd qtr results. CJ's past financial results have also indicated they own very profitable properties with the present price of oil (lots of junior's properties aren't).
Now you know at least one person has read your post. LOL