Hi S&P,
<<Reading between the lines, and remembering that HTP just stated in their latest NR that they will sell up to 50% of their Texas gas properties, I foresee another asset/cash swap between TMK and HTP.>>
I can't read that far between the lines, but somehow that wouldn't surprise me a great deal either. If it's a fair deal and gives them some cashflow to cover their overhead, it's fine by me.
<<The thing is, TMK is going to need to raise yet more cash to do so, if I am not mistaken. I foresee another PP around the corner.>>
That's the part that doesn't thrill me. As far as I can tell, they've raised about CDN $ 4.3MM since the end of Feb. which should have been enough to cover the cash cost of their acquisitions, their WC deficit and their share of the Cal Canal well. I'd be interested in knowing what portion of the ELH drilling costs was included in the above.
In any case, they'll need more cash for the ELH and the rest of the GSJB program, the Texas waterflood and WC. Against this, they have $4.4MM to come from all the options and wts out there, which on paper would cover it, but yep, I can see something around the corner as well.
Have a great day.
P.S. Wouldn't mind at all having a real beer with you, so PM me your travel schedule, if you please.
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