I think any shares that were short from NGAS and NuLoch deals would be phased out once the MHR shares were delivered, they would be turned over and the long-short paired trade would be closed out.
As for the short percentage, we are in good company with a few of the other small caps like Kodiak.
The fact of the matter is that MHR is still trying to find its footing. They are rapidly entering the crazy cheap valuation zone. 6,000 BOE/D of production and 10,000 BOE/D year end exit rate target. Marcellus, Eagle Ford, Bakken. W. Virginia pipeline. Plenty of cash and credit available.
One thing is certain, MHR continues to exhibit a lot of volatility. On some days, we lead the whole sector in gains and on others we lead the whole sector in losses. It must be nearing a bottom when it starts bouncing so erraticly.
As I said before, MHR is technically broken. The company appears to be fine from a fundamental standpoint, but it can't seem to hold any gains and seems to have unrelenting downward pressure. That being said, we need a few good days of bucking the trend to start restoring the technicals.