What is the Immediate Net effect of the Annual Meeting results and the Sopak Agreement ?
Positives: 1) Shares outstanding reduced (53.9 to 44.6 million--17%)
2) Warrants reduced by 4.35 million
3) Likely removes threat of delisting
Negatives: 1) Cost $10 million Cash
2) Increased Options allowed by 5 million
3) Increased need for cash and/or Partners to develop reserves.
For $10 million (18.6 cents/share) we increased Present Value of PROVED Reserves by 50 cents/share! (Reference page 79 of Annual Report for Present Value of $130 million)
AND, the value /share of all Potential Reserves increase by 17 % !
Prior to the Agreement and the Annual meeting the Potential future Dilution was 7 million outstanding options plus 4.35 million warrants = 11.35 million shares. Now this becomes 7 million plus 5 million =12 million. So the possible negative effect is 0.65 million shares or 1 %
The bottom lines are: Proved Reserves increased by 31 cents/share, Potential Reserves increased by 17%/share, increased need for cash or partners, and Dilution increased by 1%.