According to our Trustee the sale of the partnership and its assets will not get rid of the trust and its unit holders. The trust will still remain and await the result of the lawsuit. He states that PXD could use the price of the sale as a method of discrediting the Plaintiffs claims. When asked why he couldn’t wait one month to sell the property after trial, he says PXD is tired of dealing with the property and wants to sell them. He stated the past delays as a reason for not waiting for the current trial date as he is not even sure this one would not be delayed.
This makes little sense to me because our property is MAKING money and the cost of administering the trust is COSTING us money.
I asked if as a trustee he will report the probable or possible reserves in addition to the proved reserves now allowed by the SEC starting 2009. He said no. His answer was a catch 22. He stated if the reserve engineers provide those numbers then we will release them. I am thinking how will the reserve engineers provide these numbers if you don’t hire them again to do the calculations??
This is one of the main issues in the lawsuit. PXD and JPM says look we have not much proved reserves. Plaintiffs say well look you have a ton of possible or probable reserved you failed to explore or develop as a reasonably prudent operator.
Guess we wait and see... GLTA!
-Mike
*Disclaimer: My post are possibly fictional and/or are my opinion. I assume no liability, nor do I guarantee any stock's performance. Please do your own due diligence.
AI
