Joe, I didn't wish to imply that "the big boys are controlling this play". I'm not sure that they are. Undoubtedly, they have significant input into what goes on. But, do remember that BEA/STF (and other farmors) also have input and rights which have to be respected pursuant to the terms of a farm-out agreement.
What I was trying to convey was that by insisting that the well remain "tight hole", the big boys make it more difficult for BEA/STF to raise $$ and hence the big boys increase their own chances of carving themselves a bigger piece of the pie on April 1, 1998.
No one forced McLeod to do a rights issue. I think McLeod did the rights offering simply to protect himself and the other Directors. He can easily do Private Placements at $0.35 / $0.70, respectively. But now, having first offered shareholders their "rights", no one will be able to bitch that he gave the farm away if he does a P.P. and the stocks then trade up sharply when the land bids become known on April 2, 1998.
With respect to your last paragraph, there should be NO doubt in anyone's mind --- McLeod truly believes the regional Turner Valley play is an exceptional play. He has believed that for quite some time. But, you know what? Today, a lot of others believe it too, and many of them are employed by Big Boy(s)!!!! |
