Just so Everyone understands- The 5.13% purchase by Perseville from Terranova at $585,000 per percent was clearly the "quid pro quo" or "bribe" if you like it better, that Perciville paid to Terranova Management in exchange for getting a "sneak peek" at the final seismic which in turn likely required Carlo Civelli to allow Old Managements to secretly buy into the 25% Sahkai/ACOR piece for their own personal account at $84,000 per percentage point. Averaging the cost of the two purchases means that Perseville's average price comes out to $167,000 per percentage point on its total 30.5%. PLUS they get Terranova and HENC have to BOTH (not just Holloman) pay 100% of Perseville cost in the next TWO wells.
While on the other hand, Terranova has raised from its retail shareholders a total of around $15 million over the last three years to do this project. When you subtract both the $3.1 received from Perseville and also the 5.1 percent interest from Terranova's earned pieces the average price paid by Terranova shareholders for their remaining piece comes out right at $750,000 per percentage point. This is the "good deal" that Old Managment did for its shareholders?
What ticks me off as a Terranova Shareholder for three years is that logic and common sense says any honorable Management should have sold the piece to Perciville for the $3 million first, and from the proceeds buy the 25% piece at $84,000 per point giving us a fully paid for 40-45% when completed with only around $11 million net invested.
That would not have only been the right thing to do, but it would have been a brilliant move making old Managment look like geniuses. Had they done this even I would have been willing to pay $.30 or higher level for the Terranova stock. Then if they dumped the Farm-in-Agreement with Holloman as they did anyway, Terranova shareholders would still have more than double what they have today with a stock price four times higher with $900,000 left in the bank, only then Holloman would have had to pay the full cost for 25% of Terranova's holding gained from the purchase. Terranova could then either sell another 5% piece or do a small stock raise but at the much higher price due to the much higher residual ownership, with the end result being both TGC and HENC each owning around 50% and would have nothing to argue about and we would likely have been drilling by now.
This is what this whole Proxy fight is all about; Not whether HENC can come up with its drilling money. Not whether GP was or wasn't involved in a self-serving way. Not whether Catano happens to be CEO of another dormant small public company
IT IS ALL ABOUT WHETHER EXISTING TERRANOVA MANAGEMENT, AS PAID FIDUCIARIES (Aldorf took $146,000 in cash salary plus stock options last year according to Sedar filing) ENTRUSTED BY ITS BOD AND SHAREHOLDERS WITH TERRANOVA ASSETS AND SHAREHOLDER RAISED CASH TO RUN THE COMPANY IN THE BEST INTEREST OF ALL SHAREHOLDERS AND NOT STEALTHILY TAKING COMPANY PAID FOR TRADE SECRETS AND DIVERTING THESE TRADES SECRETS (Seismic) TO THEIR OWN IMMENSE PERSONAL GAIN.
Now if this is not enough reason for removal of the old group by shareholders while there is still a very good chance to reverse most of the above transgressions, then I strongly suggest all intelligent shareholders dump their stock after the vote as I intend to in the off chance that old Directors who allowed Management to get away with the above are re-elected. Because by letting them get away with such a major transgression this early will be giving them a license to steal the rest of the Company in short time.
But, if the old BOD is tossed out, then Terranova shareholders have very strong legal grounds to sue each of them and reverse the the malfeasance to a huge benefit to all TGC shareholder. Which is exactly what the new group intends to do when elected from what I understand. And if your concern is whether this would slow down drilling, you would be totally wrong. It could speed up drilling. Here is why.
I have been informed that partner Holloman will have access to whatever cash it needs to cover its expenses on an immediate basis. TGC, has enough cash (assuming old Management isn't draining the coffers) to put up their share, and Persevillee will either have to put up its cash call with the 25% in a court escrow until resolution, or they will be cut out like they threaten against Holloman if they don't put up their money. If the outcome is in favor of Terranova, then in a best case scenario, the courts might just force Perseville to transfer the 25% or portion of to Terranova for free, or in a worst case basis, Terranova would have to raise the $2.1 million cash to buy the 25% interest from Perseville.
JMHO
