In Jan / Feb, DEJ contracted with Sayer Advisors to find a buyer or JV partner for Woodrush. The results of the bids has never been revealed. Is it possible a buyer was procured and requires shareholder approval?
We should know once the proxy statements are sent out.
What are the possibilities it is about voting on a buyout offer for so much per share and a fractional share of the purchasing company. That seems possible, especially with the WPX discovery next to DEJ property that WPX could buy it for a 100% offer above the closing price and offer a fractional share based upon your current share count. It would kind of make sense with all of the insider options recently awarded and the termination/dismissal of the last board member that was the former equity guy.
I am just speculating, but the speical and annual meeting has me intrigued and anxious for a proxy statement to be sent out. It will be an interesting month and a half until the meeting.
KHARIG.... I have been pondering this also.
1. Many on the MB have been speculating as to what a buyout price would be...anywhere from $1.50 to $2.00 (Personally, I don't think Hodgekinson and the others have put in this much time and effort to settle for a measly $1.50 - $2.00 per share. Remember, a few years back, the price was at $2.50...and that was before DEJ had any real assets and production. Now that we have Woodrush, Koko, N & S Rangely, the picture has dramatically changed for the better.)
2. The critical news we are all awaiting is the flow and value of Koko. If it is anywhere near as big as WPX's recent discovery, this could serve as a major game-changer.
3. Since WPX sits smack-dab in the middle between Koko and Roan Creek, they would appear to be a favorite in the event of a buy-out. However, I'm not thinking a "cash" buy-out. I think it could be an exchange of shares. Today, WPX closed at $15.73, and DEJ closed at $.19+ . If the value that several are putting on a buy-out were at $1.50, that would relate to WPX offering around 1 share of WPX for every 10 shares of DEJ. This would make more sense than a cash buy-out and I can see management accepting this, because the potential sum of the parts (WPX's holdings, together with DEJ's holdings) become much greater. (There has been speculation that WPX is a potential take-over candidate, and I think a take-over of DEJ by WPX would enrich WPX's over-all asset base and position and make WPX an even more attractive candidate. This is where management, and shareholders stand to make their money.
4. Management has to aleady know the flow rate and value of Koko. Because of the CA's we are not privy to that information. The release of the proxy on May 1 should give us a picture of things to come in the very near future.
All in my opinion
Its not the sale of assets - tey have decimated these before without shareholder approval.
Its not a capital raise -- they have done this before without shareholder approval.
The only reason appears to be, splitting the Co in two or a major Mgt shakeup!!
brother basher 123, wow great job, keep firing those zingers, they make no sense but they are off the charts. Even the big old time bashers have called me and they are amazed at hard you are hitting for the fence. Just don't seem to desperate. You are getting close to your 5 year watch..jed out
In furtherance of the possibilty that Woodrush may be sold is the recent article by Zacks (Fri. - Apr. 26 which stated..."Management is currently re-evaluating the potential of theNiobrara/Mancos play in Garfield County, Colorado and may re-prioritize its capital expenditure program to focus on the development of this shale gas play in the West Grand Valley area."
I'd love to see the peace river arch assets jv'ed but I don't think we'd be listed as available post-bid if that were the case. "Under review/pending" would make sense. I have a conservative opinion that the AGM may be less interesting than we are hoping. With the 3 CA's under discussion right now, it does make one wonder though!
That is one of a few things could be on agenda, We have been shopping NR jv,? They said they have been approached by several majors since WPX announcement on their flows? Could be more on RC?(I think we did not finalize RC deal until Q1) Could be buyout as a whole, there has been some accumulating going on over the past several months. We all know retail owns huge % of shares. They need retail support. It could be regular general meeting, electing board members, budget/financing ect. We find out soon.