I agree with you “Angler”. As you said you are using a “VERY conservative” estimate even with any potential buyer assuming the current debt. Had this situation been in this country some deal would have probably already been done but since it’s in China… I feel the Chinese have been the ones holding this up while hoping FEEC will go BK so they get all our “heavy lifting” for nothing.
Some folks believe getting a dime would be acceptable. Dozens of pro athletes make close to 30 million a year. To accept forty million dollars for a 2 billion dollar asset is just ridiculous in my opinion. To be honest I would rather they go bankrupt than take such a paltry amount.
To the question is who at this point in their right mind would loan them any money ??? I don't think even "loan sharks" would give them a dime. Curiouser and curiouser....
So much for the “tipping point”. Except for the 22d well doesn’t look like any of the individual wells (group or clusters) have performed as anticipated. IN my opinion production has always been the “key” for FEEC success. Just didn’t happen. Although FEEC has “proven” reserves exist it has also proven it is very difficult (for us anyway) to get it out of the ground.
Looks like the Chinese will win this one. We have done the “heavy lifting” and one of their companies will bring this project to fruition… which I speculate was their intention from the beginning. All they had to do was create bureaucratic “red” tape and wait for FEEC to go BK. Shouldn’t be much longer when that occurs.
Latest press release says the company is still in a “blackout” period…. Seems more like a “knockout” period.
Anyone want to guess as to what management’s excuses will be when the “chit” finally hits the proverbial fan ??
Looks like to me they are using one "credit card" to pay the other "credit card". In my opinion no one would accept terms like this unless they were truly desperate. Probably get a better deal from a "loan shark".
One thing is all but certain... this "game" will end very soon. Some will win and some will lose. Anyone want to guess where shareholders will end up?
No need for management to "throw in the towel" because if continuing gas production is at the same levels they claimed (last year) - and no other activity going on- then the selling of that gas should be more than enough to pay their own salaries.
Foreclosure on an asset in China would most likely mean that the lenders would get nothing- so the banks are stymied. This could possibly go on until they failed to meet a specific contractual requirement with the Chinese (number of exploratory wells, production level, etc. ) at which time I believe China will show FEEC the quick door out