GulfSlope Energy Inc (GSPE)

[Trip-Fontaine]

My primary concerns: depending on what they discover when drilling these two prospects, their strength in further negotiations with Delek and others might be affected. If the geology turns out to be less favorable maybe Delek wants to re negotiate the terms of the agreement rather than pulling out entirely. Maybe we find 50mboe after drilling 6 prospects, however by then we might have 10% of it instead of 20.
Also a senior listing is not a done deal, I dont know the requirements for Nasdaq or NYSE but GSPE will most probably have very little cash on hand during this entire drilling campaign, a very volatile share price, and also any up-listing will be in concert with a reverse split. Staying on OTC is staying under the radar which also equals low investor attentions and less ability to obtain financing at reasonable terms. With both current significant insider ownership and Delek showing intentions to own a part of GSPE there is a chance/risk of this company going private at a low price tag early in this process.