DudeKabob

10 Upcoming Catalysts for ATP Oil and Gas

You've been dilluted. Now what?


On Jun 03 05:10 PM Devon Shire wrote:

> I don't know why they filed the shelf. I would be shocked if common
> shares were issued at these prices as management owns 20% of the
> company and would be diluted terribly.
>
> It is especially unlikely given the vendors picking up $300mil of
> drilling costs on Telemark to be repaid out of future production.
>
>
> Maybe they are looking at a pref share offering, they have used this
> in the past. Maybe they are just getting one filed so they can move
> quickly if the share price moves up significantly.
>
> Also consider they have other large sums of cash coming in over the
> next 9 months. Gomez pipeline $85mil, Titan MLP $260mil, Telemark
> pipeline $160mil. CFO as recently as today reaffirmed that these
> are going to happen.
>
> With the arrangement for vendor pick up of drilling costs today and
> their 20% stake in the game I am inclined to think that I'm not going
> to be diluted.
>
> And the amazing thing is that even if I am, half of the $87 I think
> these shares are worth is still $40 plus with huge dilution.
>
> Thanks for the comment.