Yes - a billion is not crazy. Look at the 10-Qs to see the face value of convertibles out and then figure they convert around 50% of the lowest stock price (or a minimum floor if the stock goes up) and calculate the number of shares needed to meet that obligation. Then assume that as there are no sources of profit in the near-term (even if there are oil revenues it is unlikely there will be oil profits with oil sub 50), they will issue more. Then these shares have to be sold which send the price down more which causes more dilution (since they convert into even MORE shares as the stock price goes lower). It gets super-duper ugly. That's why these are known as "death-spiral" converts and have not been used by anyone legitimate in more than 15 years when they help quicken EToy's trip to the grave.
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