Mr. Callaway undoubtedly thought that EEGC's geology looked positive, and thus he joined the company.
However, Mr. Calloway's thinking does not make commercial oil a fact any more than a divining rod or a vision from God.
RPS Energy -- EEGC's contractor, not the contractor of 'bashers' -- took the geology prospect by prospect, and analyzed all of the factors which go into creating a commercially viable oil reserve, and came up with 2% 'probability to disocver hydrocarbons in a sufficient quantity for them to be tested to the surface' for Bellevue(Executive Summary, page 2, Table 2). Bellevue is the largest prospect -- well over half of the potential oil -- and 2% is the highest probability of all the prospects, by far.
But, 2% is not 20% or 50% or 80% -- thus EEGC's difficulty in getting finance at a reasonable price. Even Sure-placed notes, if they happen, involve giving up a percentage of gross profit.
2.5 months later, EEGC has not explicitly announced the result of the Sure due diligence required by their Agreement, although the recent PR speaking of the need for insurance for the notes may be an implicit statement that Sure wasn't satisifed that the collateral offered (the lease?) would provide sufficient protection for $180M of 'principal protected' notes.
In an earlier post you spoke of an EEGC FAT CAT writing a check to Hunt -- hope that happens, we are four business hours away from the hearing. While I am sure there is some brinksmanship strategy involved, that is uncomfortably close and meanwhile we are burning legal dollars.
AI
