Recent

% | $
Quotes you view appear here for quick access.

Contango Oil & Gas Company Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • lexpress56 lexpress56 Feb 28, 2008 6:55 PM Flag

    give Tiger his due or you may be sorry

    Tiger:

    You indicated: "Already answered, tax issues, sell of F Shale needed to re-invest in 90? days."

    Yes, KP made a tax-deferred 1031 exchange, but so what? He could have gotten the same tax results by purchasing any other production from any other field.

    And you continued: "Worth $5 to MCF, no on else unless they have a price deck 30% above consesnus."

    Your note implies his purchase price of $5 per mcf for the additional Dutch interest was a "special pre-tax price" just because it was invested in Dutch MR, which would be worth only $3.70 post-tax to someone else, and that is nonsensical. Reserves are a commodity and as KP always says "Contango is in a commodities business."

    Does MCF have a vested interest in seeing high purchase prices for reserves in the Dutch field? You bet, but it would be silly to overpay by a 35% tax rate (as you imply) for a commodity -- buy someone else's production.

    As in my past notes to you, I am not criticizing you for having another opinion; I just ask for the rationale and the rationale you have given so far, on this point at least, is BS.

 
MCF
11.591-0.249(-2.10%)10:59 AMEDT