The stock might be suffering,but
But the Company isn't having any trouble borrowing money from the European's for these acquisitions. We don't know what they are paying for the second one. However,just the first one at 350 million in cash says alot.
Like wow, here is 5 times the amount of your market cap to purchase the first acquisition (Magma oil fields) not to mention the second one. There is a hugh amount of faith in this Company and its representatives. I know we don't have all the answers we would like at this point, but keep the faith and stay the course. quotes below:
According to the company, now that the tender has been won, negotiations are well underway to conclude the transaction for the Magma Oil Fields estimated at approximately USD $350 million, in an all cash transaction
There is a definite interest by a number of European funds to provide the necessary funding for these acquisitions
The purchase shall be for 100% of both the Company and its subsidiary, ZAO Itilneft.
The Company, which was formed 7 years ago, provides an excellent opportunity to acquire low priced assets in the very prolific Lower Volga Basin; its licenses have significant further upside potential with a large surface to explore within well-defined prospects. The Company has all the necessary services and facilities for growth. It presently has 142 employees and 3 certified chemical laboratories
