The question is -- can they structure a deal that doesn't require $55 to $60 million in cash?
To raise that kind of cash, they would have to dilute the common even further.
A more creative deal is possible, but MHR only owns 45 to 50% of most of its better EF wells drilled so far. So if you give MHR equity stake, PVA winds up with a pretty small pie.
I think the answer would be for PVA to attract a major partner for all of EF acreage -- just go in bigger and have the major partner put up more of the cash.
I don't see many other scenarios that would work for current PVA shareholders.
hoops--as you warn, management better perform and I'm sure the analysts will say the price of oil had better not come in much. Should be an interesting call in the morning. Wonder what Magnum's lock up on its $4 shares will be?