Having met with the guy and hearing his comments, I can see it clearly. Here are some random thoughts.
Having worked in small start ups, I will say it again, the MAJOR reason for the RS was CB's ownership (period). This founder, CEO and owner had essentially no ownership to speak of pre RS, none. He owned less than 2% of the company. Raising money, moving to the big board, were all smoke and mirrors, just like the promises he made pre RS on the conference call. Vote for me and I will, what, be silent.
The 25X RS multiple gave him the 1/3 interest he demanded. A 10X or 20X multiple just would not work. His ownership was all based on the RS multiple leverage. So everyone saying that it was positioning to get to the bigger boards, IMO, is mistaken. As a residual purpose, absolutely. He was getting his ducks in line prior to launching his baby. He would have lost everything had he not done so.
Another reason, he needed to show poor performance, post RS, to justify the RS. Slow things down, we are in no hurry. When you talk to them, they talk in terms of decades, not months, quarters or years.
Now some of the positives. MN #1 was just hooked up Jan 31st, yet no numbers.
What about all the equipment that was being set up on site from the December photos? That's a lot of hardware/investment for dry holes, NOT.
Here is another issue. From what we know, the company has not issued any new stock to raise funds. Now that is strange. We were dying into the RS, but we manage to survive and live on without a resuscitator.
Again, think back to the September 2006 announcement of the 5 O & G formation that the company logged on the new drilling. Did all that go away?
The only thing I can say that I still believe about CB from my DD is that he still is considered by many to be a good oil man. Isn't that what we are betting on? You notice, I didn't say CEO.
I will tell you a story. About 1 1/2 years ago, my daughter, who works in a distribution business supporting resturants/hotels etc, came across a man who was CFO of an oil company. In the discussion, she brought up AEMP. He not only knew of CB, but knew of AMEP and what they were doing. His comments were such that he said, that should be a good investment, but that it could take a very long time. NO KIDDING.
Hayhauler, you are saying that this is a dry hole and I am saying, otherwise, even in face of what we know to date, IMO.
