Well they certainly seem to have generated an increase in discussion with this latest news release. If you don't mind I would like to offer my perspective on a couple of the points raised:
- no longer a drilling company - WRN basically never became a drilling company, there were intentions to try and do a deal that would have made us a drilling company but??? When the deal was put together with Taylor it did make WRN a drill rig manufacturer. I don't have all the details on that front, but still believe that there is something not sitting right between the operational side of Taylor and Westrend itself. I will not be surprised to see that relationship change again.
- Safe-T-Bars - still a manufacturing company correct? (may be a fit, somewhere down the road??) Now, initially what is being announced is a distribution rights agreement, however, would anyone suggest that the original nature of the agreement is necessarily the only vision there might be for the 2 companies?? It strikes me that some form an agreement with a company who supplies a machined product, may have other benefits, within the O&G business as well as outside it.
- diversity - given that we have heard the "the industry is just too slow right now" song and dance, how can any of us argue with implementing an alternative industry diversification project. Not to mention the fact that an alliance with a US listed company may have other benefits, down the road.
- shares for debt - I am not a fan of this particular concept either, however, the debt must be dealt with and to be honest, we're a lot better of at .15 than at .08 - .10, just trying to be realistic.
- rollback - I have little doubt that we will still experience a rollback, unfortunately I have no idea at what ratio I would expect it to happen. I personally would not really mind seeing a 2 or 3 to 1 rollback, but only in conjunction with a major transaction being completed. That way the attention gets removed from the rollback and the focus is on the deal, yet at the same time the outstanding share structure gets cleaned up a bit as well.
Salut,
Leigh McBain |
