Not a very strong close today, at .0058. Many expected a more positive response to the PR. Actually, I found the PR quite difficult to decipher. Also, I haven't heard anyone here explaining in depth or talking about the details mentioned in the PR. I think it went right over many people's heads, including my own.
Is Rio Riata becoming a subsidiary of Bayport, and is this the company that Bayport plans to distribute its dividend through?
The PR could have been much more clear in explaining what leases are currently held by Bayport and then explaining what additional leasehold interest Bayport hopes to acquire through Rio Riata.
I'm still trying to figure all this out:
"...three wells located within the Peck A lease covering the south 320 acres..."
"The Peck A and Peck B lease covers 20 acres."
Bayport and Rio Riata "own an additional 160 acres within the area."
Then there is mention of the south 20 acres under the SW/4 which appears to be what Bayport is after. And finally an area of
160 acres "under the Peck A and Peck B leases" which is held by OXY, all very confusing to the lay person.
I find this corporate update so convoluted that I am unable to imagine how someone unfamiliar with this type of offset production leasehold agreement could understand the value of what is taking place.
As a final thought, what is it that Rio Riata will get in exchange for its remaining controlling leasehold interest?
TIA,
Lochan
