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I sure hope that you are right. It is understandable to me that some may trade out when there is not much going on right now, the boards pretty silent too. Someone could make the argument that trading out when it was at .38 would have been a super smart move to buy back in now at 18 cents or lower.
Trade volume has still been pretty active this week, over 100,000 shares a day, given that the price range hasn't moved much and it seems to always pop back to the 18 cent mark at the end of the day. Is there a reason why? Perhaps someone wants to buy up to 18 cents and no higher? I'd like to hear that someone is collecting, but can't see any information from any source. It is a bit frustrating to me that there isn't ANY transparency, but I agree that it is up the Plaintiffs to share what they decide (nothing in this case).
It would sure help to hear something that may indicate that this Term sheet is not a done deal.
I agree wholeheartedly Leb, barring some tactical blunder in the Plaintiff's case (can't make the case for some reason, missing witness or info) I think a trial or much altered settlement is needed.
I will be sending my monetary support based on units (wish both were more!)
But she can refuse the agreement and cite why, and they can renegotiate.
You and Keith have my full support. If there was time for a petition, I would certainly sign it. Thanks for your and his thoughtful letters.
Is it possible for JPM & Pioneer to publish this agreement without having signatures from Kim & MHLP? Has anyone on this board had any communication with any of the legal team or groups to establish it? I expect to find out quite a bit on friday, and want to see that trial date taken down if this is really a settlement here. Holding tight until then. JMO
You are absolutely right on that, a sweetheart deal would create the result that this case was about in the first place- illegal farmout and starvation of the trust in order to get at the properties.
If this settlement goes forward as set in the Terms sheet, then you get nearly an identical result as if the Trust were killed years ago.
Hope it's T.Boone, giving his Mesa one last run... for a decent sum!!
Sorry, all I asked about was the calendar date for the trial.
Just got off the phone with the court and confirmed that it's NOT a typo. Ouch. Sad part is with no powder available, if this tanks I'm not in position to gain any units. Frustrating!!
Thanks. I plan to call anyhow, just to be sure it's not a typo.
I am looking at the court's web site and cannot find that document. What is the document number, anyone who has found it to double check????
Thanks-
Thanks!!! I can't wait to read it. The discussions here about the main issues of the case are very important to any new investors, IMHO. The GOMS vs. FluffyBunny stuff I think is central, and it would be good to get the layout of the issues involved with each Defendant.
I think the longer the delays, the more possibility of settlement and the more exposure of the law suit to investors. They can have all the time they need!!
GOMOSH
Do you happen to have the doc number for this? I am looking around the Harris Cty site and can't find it- want to do some serious reading!!!
Most Interesting Post
I read an interesting topic on the Yahoo board, where a poster "GOMWD" posted this:
"The MOSH trust can't acquire new properties, but Pioneer has and had a fiduciary duty to develop the original properties in a workmanship manner consistent with good oil and gas field development practices. pxd also owned working interests in most of properties where mosh held working interests, so they had a "self interest" in maximizing production for the trust. The original documents also allowed pxd to a 10% interest off the top of all net trust income. If pxd didn't want to drill new exploratory or development wells, rework, or re-complete existing wells in other behind-the-pipe identified proved probable producing zones, then they could either let the leases expire after the leases became uneconomic, or farm their interest out to another operator BURDENED BY THE TRUST'S INTEREST.
Instead of drilling on properties where the trust had a working interest, in almost all cases, they chose to farm out their interest AND THE TRUST'S INTEREST, and changing the much larger trust WI for a much smaller ORRI. pxd's predecessor, Mesa Petroleum/Boone had always drilled our properties and fronted the costs for the trust, and after repayment of those costs, we received 90% of ongoing production payments in the form of royalties.
pxd got greedy and farmed out our 50% WI down to a 4.5% ORRI, BUT THEY BROKE THE RULE IN THE ORIGINAL TRUST CONVEYANCE, WHEN THEY FARMED SAMOA AND MIDWAY OUT TO THEMSELVES AND SERVED AS OPERATOR. Then they hit a good well announced 3 weeks before the 4/11/2005 lawsuit filing, and then commenced to lie about it, claiming the well had turned to crap."
Very nice. The persistent FluffyBunny countered with:
"Yes Pioneer can spend and do what ever they feel like, but as you stated the TRUST can't do squat. You cannot depend on your operator to do anything YOU DID NOT CONTRACT HIM TO DO! Did MOSH CONTRACT PIONEER TO DRILL NEW WELLS FOR THE TRUST???? I think not. Contracts are king and the letter of the law. "Fiduciary duty" is a joke on fuzzy logic. Good luck proving that because in the court its gonna come right back to what they were CONTRACTED to do. And that was OPERATE the properties."
In reading this, my thoughts are that the strong ground here for MOSH is the fact that PXD CONSISTENTLY decided to go against MOSH interests. Also, if the geologic facts are that it would be of economic benefit to develop properties, yet PXD chose not to do so, CONSISTENTLY, can't you then establish that there is a motive here? It seems to this layman that their clear established pattern of action against the trust establishes intent- and that is where JPM should have stepped in on our behalf and sued their butts.
A great smoking gun would be some tests of those wells, to confirm the sulpher and/or mercury contaminations there. Maybe someone can speak to whether anything of this kind has been brought up. And when the product of several pipelines contained the contaminants, could it be that they weren't even from our Brazos well?
Any other interpretations, or comments on this?
Oh, and a second argument, concerns whether the threshold of operations was maintained by the trust. In the founding document, it states that if the trust does not have enough income for for 3 consecutive years, it would be terminated and assets would be sold. Part of the suit involves whether the threshold was reached legitimately, or if it was 'helped' along by the accounting methods used to manage MOSH.
More specifically, the issue involves the use of the abandonment well reserve account. Instead of using saved reserve cash set aside for abandonment expenses, Pioneer has been pulling the abandonment expenses from current revenue, thus shrinking it. Shrinking it takes away from income that could help the trust to keep above termination threshold.
If the termination threshold was reached due to ANY fraudulent reasons, then JPM should have been suing PXD on behalf of the trust. Read "Exhibit A" on the court's site about the abandonment issue.
One would think they would be ready by now- it's not as if the trial's never been postponed before!! Could be a good sign here- originally this status conference would have been for the third day of trial, had it started on the 13th, and it has been pushed back twice now.
You can also check the links at the top of this board, namely:
http://www.mosh-info.byethost32.com/
You can also go into Scottrade or your trading software and go to MOSH, then SEC Filings, and get access to the 10K from there.
You should read some older GO MOSH posts about the farmout, the number of wells on MOSH properties, and the difference between cost overriding interests and Royalty Overriding interest.
The main argument of the case is the claim that PXD (pioneer) did not follow the wording of the trust's founding document (The Indenture), and should not have been able to farm out the trust's (& unitholders) interest in MOSH properties to another operator - Woodside.
Cheers,
Good point considering the size of the parties here. Also, even moderate volume effects price substantially, so if there were any leak we would be punching a hole through the roof.
There is a "Motion to Intervene" on the Court site for Michael Brown, also Mike U's subpeana has been served. Not sure of the relevence of that. Any comments?
Yep- my palms are sweaty and my knuckles white, but I'm a-hangin on!
The fireworks have finally gone off- .34!!
He must be thinking... "along with the MOSHers"... blah, blah, blah.
Good Morning all- I'd like to go ahead and reserve tomorrow morning for MOSH fireworks, please. And power hour today as well, unless someone else already has dibs.
If you care to size up the competition:
http://www.boyerketchand.com/index.php
http://www.gibbs-bruns.com/
Our teams GO MOSH posted a couple of weeks back.
A MOSH Sammich:
---O-----O----
PXD
---O-----O----
JPM
---O-----O----
WoodSide
---O-----O----
Sprinkle with MU shavings, serve warm.
Good Weekend ALL!!
He may be thinking of Ukrainian or Russian Holodetz, which is a mixture of meat and rice wrapped in cabbage leaf and then gently fried.... good stuff!
Interesting insight, LV, just shows how many valid ways there are to look at court proceedings!
From my understanding it depends upon what the judge decides, she would set the date required. But if it is marked as the first day of trial, you would want your settled purchase of shares to be before that date.
Sure thing. Also, Eddie Izzard has a funny clip imitating the invention of the Himlich Maneuver.. making fun of the German accent but Eddie's not German.
My nuance is that I actually hope for both trial and settlement- that the plaintiffs make their case and wipe the floor with them, Mike U gets his, and then the trial stops due to settlement.
My argument is that PXD has tried to prolong this thing forever, and I would expect them to keep on delaying until the last second, hoping the Plaintiffs can't/won't make their case.
The burden of proof rests with the Plaintiffs- not a criticism just stating a fact.
Sure thing. Also, Eddie Izzard has a funny clip imitating the invention of the Himlich Maneuver.. making fun of the German accent but Eddie's not German.
My nuance is that I actually hope for both trial and settlement- that the plaintiffs make their case and wipe the floor with them, Mike U gets his, and then the trial stops due to settlement.
My argument is that PXD has tried to prolong this thing forever, and I would expect them to keep on delaying until the last second, hoping the Plaintiffs can't/won't make their case.
The burden of proof rests with the Plaintiffs- not a criticism just stating a fact.
GO MOSH: You really need to do your due diligence here.... I found 38 pages of german comedians...
http://en.wikipedia.org/wiki/Category:German_comedians
Of course, I don't know of any that are actually funny.
You misread my post there, GO MOSH, guilt is not what I am questioning, only the possibility of settlement before trial.
Now, now, we are talking about the possibility of settlement, not whether or not PXD & JPM are guilty. There has not been a "smoking gun" to point either way on settlement........unless I'm wrong...
Conference: Wasn't this timed to be the third day of trial... and since it wasn't moved to actually be the third day of trial what could happen here? I would personally hope a nice slap from the Judge reminding the parties not to WASTE everyone's TIME. Hope you UNDERSTAND what I'm SAYING!!
Excellent points, I agree entirely. I was considering flipping 1k units in attempt to leverage down, and jsut couldn't bring myself to pull the trigger in light of the very points you are making. What is there to lose by staying in between now and 2 days into the trial? Not much, but there is tons to lose if you're out and the trial starts and/or there is settlement.
I was quite convinced that this would be popping before trial, but I guess there will be volatility both ways since there hasn't been any press yet. I was hoping that the volitility would be between 40-45 cents, not 25 to 30! And I expect there to be wild volitility during the trial-
It would be a great story for someone to interview T-Boone and ask him what he thinks about the way the Pioneer and JPM have handled the trust- and how MOSH has done in protecting the trust... that would be a great tangent for a story and get the litigation out there. The good thing here is that if we win we will have been on the right side, and any rewards were in bringing about needed justice.
You have to admit though, the "funny as a barrel of monkeys" was pretty good.... I appreciate your efforts to cover the trial, at any rate.
Ain't that the truth. It's easy to bet the flop, but then river comes. That's why you exert maximum pressure as soon as possible. But we're not dealing with pansies here, these are real calculators- they aren't going to cave until every other option is exhaused, IMHO.
I'd chalk it up to some last minute flipping action, unless LP is right about some out here having weak hands. I thought about trying to leverage down, but the volume just isn't there. Some bored hands could also be just throwing around some shares to see what happens- I assume that PERT on the ASK and BID means that PERT is trying to control the upper end while reselling those shares to pad the coffer for later this week or next.
JMO.
I can't imagine anyone being truly against settlement, as long as the figure were high enough. After reading "Exhibit A", it opened my eyes to the possibilities of what kinds of figures could happen after a successful trial, or even a successful display of the Plaintiff's case.
The defendants really have to consider the possiblity of a truly pissed-off jury, as we have all noted and you of all would agree- nobody knows what could happen at trial. The good news here is that the Judge has been doing a good job of closing up appeal options. I have no problem with waiting out an appeals process, if I know what's on the other end!!
You sure you outlook isn't a bit skewed by your desire to see Mikey on the stand squirming? I hope the settlement comes right after that....
I think you could get alot of the details to publish from the latest 10K document.
I think that if there is to be any settlement, that it would take place after the Defendants have heard MOSH's case entirely, and be convinced that it has been recieved by the jury. The burden of proof is on the Plaintiffs, settlement would be delayed until the last possible moment. Just my opinion here.
You could always get the free trial subscription to iHub...
I am wondering if there is anyone on the board who will also be at trial, who can give us some point by points, maybe with twitter? So far I guess the question is if we start today or thursday, and if jury selection and other items will take an entire day or not. Either this means that tomorrow is the first real day, or friday.
GLTA
I have been thinking about this status conference just a couple of days into the trial to start monday, and am tying this in with the advice just posted about 500Mill being a starting point for settlement, but that defendants would want to hear the claim.
It makes sense to me that the defendants would want to hear the entire first half of the trial, where the plaintiff prove their case, then decide if that proof is convincing to the jury. Only then would they be ready to pony up to the real responsibility of needing to settle and take the damage now rather than risk punitive damages. This has been the course all along for defense, to sit back and postpone the inevitable. This is of course conjecture, but am wondering if any of you have thoughts along this line.
I would also expect that this would be a pivotal moment in the trial, if it is indeed after the plantiff rests. If the plantiff side takes longer and the conference is postponed, this may be an indication as well.....
Thoughts?