Quattro Exploration and Production Ltd QEXXF

shares covert to common

[coffeeguy331]

the class b shares are convertible. 4% int and van be converted into common shares in year 3 at 4.00 per share. The seller must have thought that was a good deal.

[rknigh2]

Yes quite a different tune than the raise with the 50 cent 8% convertible debentures from late last year. Very interesting indeed.

[Jonnybgood123]

Which means....?

[rknigh2]

Dividend is half the rate of the debentures and is at an 85% conversion premium to the current share price. We'll see when it close, but this is a significantly more advantageous than issuing common, CDs, or even using the bank debt.

[elgaveeno]

Of course the seller thought it was a good deal. The Mudman got $800k in cash for a set of data (all availble from public databases) and an advisory spot on the board, plus he gets a 1.5% GORR on anything he takes to them for a prospect. In related news: QXP admits it has no idea how to find new production and resorts to digging through boxes of paper in some old guy's basement for "poor

[rknigh2]

Saw this post coming when I saw that typo. Hah! Who is the seller Elga? Not much info on Willis.

[elgaveeno]

Ther is not much info put out there at all, but the release makes it pretty clear that this Willis guy is getting $800k for information he kept during his 40 years of woking for other people. They discuss 400 wells that penetrate the deep basin, then go on to describe his history of 400 wells, so it is easy to connect the dots. I wonder how his clients would feel knowing that he is selling data

[rknigh2]

I assumed you had some information about Willis. I didn't realize you deduced the conclusions from the announcement. Either way, it would be nice to hear some comments from management on how the data fits in with the current assets. The GORR is pretty reasonable. If the data helps add production, it would equate to a ~40 cent reduction in net backs on any new production from the analyzed areas

[Jonnybgood123]

Makes one wonder what the release of news " signing letter of intent for database" is going to do much to help the stock.  Wondering if elgaveno is onto something. They are paying someone to promote this stock for them, and that's the best they can come up with? Really getting disappointed in this one... just sayin.

[Jonnybgood123]

"The next big oil company in the making" seems a little far fetched at this point on QXP. If the story is so good, why aren't the brokerage analysts picking up on this?  Who is doing the PR for QXP ?

[rknigh2]

Wouldn't buy the story. If you're buying it's because you're paying: 2x EBITDA $10000/boepd 0.2 Debt/CF 50% discount to 4 years proved reserves Tough to find many producers with those numbers. I'm all ears if anyone can find them though!