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SOUTHPEN

09/28/10 2:15 PM

#39 RE: zoom22 #38

I really dont know the whole story ,but my first reaction was not good. This management is determined to make things happen which means that there will be deals from time to time that make little sense to us at first but when the whole picture is presented we all of a sudden become far more acceptable of their initiatives.There is a lot of things going on here . Looks like more expansion of the Ontario properties ,development in Saskatchewan and 3 Latin properties any of which could be dealt.A strong bargaining position for the company when trying to deal properties or engage in JVs is to not NEED to do it. I am speculating that might be some of the reasoning with this newest financing. Remember that bought deal financing means not shares to the market but shares to usually someone with deep pockets that possibly sees merit in a long term investment. ,just some thoughts...