Paralysis - Rock and a Hard Place
On Dec 22 I posted that if Tenaz (or anybody else chasing Intl) wanted this bag of cash they could make a cash or stock offer for the VLE cash value of CDN$.60 and they would get the Turkey deep rights for free. The deep rights are worthless unless a well capitalized and competent operator can farmin and prove that the natgas will flow at economic rates. My guess is it would take 1-2 years and 4-8 new drills to even get a chance at proving some of the lands potentially productive. Don't know the deep well costs there, but I expect they are massive.
Should they continue to try and buy something, using recent acquisition metrics, the VLE $50MM (which erodes every month due to their off-scale G&A burn) might buy them 2000 - 3000 boepd. Who cares.
If they choose to use their cash to farmin to drill another play somewhere, that would imply the VLE lands are not worth putting VLE shareholder funds into.
The Board should have put this cashed-up cow up for formal auction months ago.