Giving up 50% of Merlin for $13M considering the 600M+ barrels estimate sure doesn't make much sense. My main point or concern is how much more of the 50% that 88 owns will they give up during the next round of drilling and potentially, production costs.
It seems someone sure made out extremely well on the 50% deal... contingent on results obviously. Due to a lack of revenue and funds, with enormous drilling and production costs ahead, the concern of further equity distribution to cover costs is a legitimate concern here.
Then we still have the 360M share issuance... I will have to confirm exactly who those shares went to. I was originally under the impression that the 360M shares were the cover the driller fees and payment. But then digging further reveals the 50% agreement.
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