Hi John,
You wrote: If I was operator of ELH, there would be
no netting - either pay-up or your out is typical. In fact,
I would cash call everybody before work commenced.
Maybe APC should have set some value on ELH when
buying it from BKP, but wait that would have given the play
viality, and we couldn't have that, then the JVs could raise
capital, and other parties like OXY might get upset, thinking
that there may be something going on in them there Lost Hills.
As far as cash call goes who gives a flying CRAP, APC probably
doesn't, and the JVs will never sign one of APC Bullshit JOA's,
APC never put this play together, it was put together buy people
who could actually talk to each other at any given time, and shake
hands without wondering where their watch went.
Time for APC to step up and pay fair value, increase their position,
and move on with this play, there are only a few companies in this
group that can keep up with the kind of money needed to bring this
play through the development stage?
Bottom line John, JVs have to protect their shareholders interests
(ALL THE REST IS SMOKE AND MIRRORS) IMHO!
Take care
Bob |
