From Mar 19 8-K;
"no prepayment penalty", "default of the Note and Bend Arch will forfeit all ownership of the related leases and wells and relinquish operations on the lease and wells to Proco, and (v) upon a default of the Note, Bend Arch will vacate the leases with no rights of ownership and execute the necessary documents to transfer the leases and wells to Proco or its assigns."
This is very positive news.
By my calculations, at 8% per annum, AENP will owe JB $2.9 million at the end 2008 when this extension expires.
CB (as CEO with a fiduciary duty to the shareholders, not to mention owner of over 1/3 of AENP) must feel that Proco is worth far more than that or else he would just walk away. The upcoming Financials should provide clarification.
If Proco is worth $4 to 6 million at today's oil prices, add that to AENP's other debt free assets (7k+ acres, drilling rigs, pipeline etc...) You do the math...
I am not selling any shares until I know the true worth of AENP's assets.
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