Replies to post #698 on GulfSlope Energy Inc (GSPE)

[necrow]

Debt, for one. Not all of the outstanding debt owed to Seitz is convertible, so that portion isn't dilutive. Regardless, not really my point. I'm just saying that the number of shares they want permission to issue is concerning--the capability to issue 500M shares when there are 1B shares to begin with is troublesome. That's 1/3rd of an investor's portfolio gone instantly.

For individual investors like us, who are completely sold on the company, who cares? I don't, because the prospect of hitting it big here is still enticing and I don't have to answer to anyone. But for institutional investors with fiduciary responsibilities? That's a huge red flag. How do you explain to your fiduciary that 1/3rd of that position has evaporated into thin air?

I'm bought in on Seitz making the hard decisions, especially considering how much skin he has in the game. But if they had to do something that drastic, it would be very, very bad for the company's prospects. That's all I'm trying to say here: everyone operates under the principle of "Seitz will cure this company of any financial woes," but it's not always that simple, especially when the company desperately needs buy-in from bigger investors. I'm not saying to sell, and I'm not saying they'll make the wrong call, but it's undoubtedly a concern for me, at least.

[spec machine]

FYI - just a recent status data point that I collected on GSPE upcoming exploration contract

Although the U.S. Gulf of Mexico has an extra supply of jack-up rigs, we've been able to find work in the region with our high-specification rings. The Ralph Coffman, a 240-C class jack-up, recently arrived in the U.S. and is scheduled to work for GulfSlope Energy in early June 2018, while the EXL III has been operating for McMoRan since March, executing a 5-well PMA program that will keep the rig busy through July.

from Rowan conf call on May 2nd
https://finance.yahoo.com/news/edited-transcript-rdc-earnings-conference-224254772.html

The rig had been in Trinidad so I had interest in confirming the relocation on schedule

I have the IMO (8768945) and MMSI for the Ralph Coffman but the rig does not appear on AIS as far as I can tell so I am unable to tell when it arrives on station to spud canoe

I figure there might be a few days of volatility when that is announced and possibly a drift lower in June if it is delayed

It was stated earlier somewhere that the permitting is already in progress but I am unable to confirm it yet through searchable BOEM data

IMO, the first well, Canoe, will probably generate a lot more visibility than it will generate value, in the short term anyway

Either way I'm optimistic that this is a moderate risk long term value play with a sound management structure and plan

spec