Kels - my post was not intended to debate the use of this cash from the asset sale. I only wanted to point out that a company that converts an asset to cash by liquidating it doesn't impact the balance sheet of the company if that said asset was carried on the books at FMV (fair market value) and was sold for roughly this amount.
Since there are no recent Hemi financials to look at, we can only speculate what value this asset was on their books at. It could have been sold at above, equal or below acquisition cost...
I remember seeing posts where some claimed that this $475K of cash would be equal to an extra 0.7 cents a share ($475K / 65M shares o/s) is value. I say it wouldn't since it only offset the asset that was sold.
Looking forward to positive results from this Silvey well, I believe it was a good decision to convert the WYO lease to cash to fund this well. Hope it produces a lot of oil and that we are kept informed this time of the drilling / production results.
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