The All-in-one Takeover Thread
Q: Opti has funds and credit that should be able to last it till the end of 2010. They may breach a debt covanent and get their revolver pulled, but I see that as remote. Yes, they may get a low ball offer. It's wait and see on that one but with UTS rejecting Total SA's low ball offer combined with the fact that Nexen has the right to match any outside offer and I think we might see something fair - IF and offer is made. Opti needs oil at $60 CDN (48US) and to be producing at full capacity in order to be self sustaining in the long run. That is their break even point on all expenses assuming things go perfectly (yeah right!). Opti does not need $60 CDN oil this year because they have basically all their production for this year hedged at $76 US.
A: I think everyone is geting side tracked. My position is two fold 1. why has CCS application been taken off the table and if it has been when did managment expect to tell shareholders. 2. can the current board & management be trusted with the company considering the poor communication & operations job they have done to date Again I am not telling anyone else what to do but certainly not going to hand over my voting rights to any member of the current board. To those shareholders that are angry about being treated like fools by the managment & board of Opti, I know exactly how you feel. The board need to come out next week and give some answers to questions regarding M&A talks (confirm/deny) as well as CCS grant(In/Out/Why). If a group of Shareholders can send a strong message to Opti board before the AGM maybe we can get some answers. I understand your frustration with Opti Board. I feel sometimes we are left in the dark in regards to certain things. I am not sure why they did not procede with the ccs grant, but as I mentiond in the other thread, I wonder if they are already well on their way to ccs through the AERI. If this is the case I think we should hear something asap. By the way Charlie Fisher is/was on the board of the AERI. Still see something here. Here's a reason why Opti could have opted out: The Alberta Government grant would only cover a percentage of the cost for CCS. Perhaps the percentage of the cost Opti was to incur was too high for the cash strapped company. Any licensing out of the OrCrude process could be years and years away and there is no gaurantee that OrCrude is the golden goose. I am not aware of any company that has inquired about procuring OrCrude tech to date.
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