RE:RE:Shareholder value This may be ignorant, But I am not sure how the explosive growth factors into the buyout price if The land base remains the same, drilling inventory and locations remain the same , and well payouts are the same. only thing to change is the speed at which this Current company planned to extract the resources. Any company paying a premium in a buyout scenario is not paying for the projected growth of the old company but the reserves and growth potential the new company sees fit to unlock. Chances are any suitors of PIPE are mostly looking to increase inventory with positive current cash flow.
I do see the final share price in a buyout being negatively impacted by decrease in reserves based on
1. extended resource depletion as we wait for oil and gas prices to recover.
2. Decrease in vrgc1 window did hurt, however that could be less of a factor if Eastern well results meet or exceed expectations.
Feel free to point out flaws in my thought processes