Here are some answers to my questions of yesterday posted on another board by Capcove:

Hi Dunnock

Quick and simple answers to your questions as I understand the rules:

1. Will Union Gold be able to start trading again immediately the merger is agreed at the AGM, or will there be further formalities to go through, such as the distribution of shares to SPE's shareholders?

A: They should start trading right away unless there is more information that is "material" and only some shareholders know about it (i.e. insider trading posability). Once the information is public knowledge, trading should resume and each shareholder and potential shareholder can determine what the shares are worth based on their interpretation of that information.

2. How long will Union Gold be able to trade before any name change, and will this have an effect on the bids?
A: That is up to the new board and should not affect shareprice.

3. If oil is struck before the merger is finalised, how long will SPE as operators and under the tight hole status, be allowed to sit on news which might give them an advantage over the two other publicly listed companies with which they are partnered?

A: They can withhold information under tight hole status, to protect proprietary information that will benefit all shareholders , but they cannot withold information to create gains for themselves at our expense.

4. Where would this merger leave any directors of CIVC if they already held shares in SPE or had bought in to UN?

A: With the best of both worlds. The current directors are not currently shareholders of UN, but some of them own SPE, as I understand it, and will own UN shares after the merger. On a seperate note(message) most of the insider disposals for 500,000 shares were transferred to Credit Corp. to settle parts of the Enegi/Credit Corp deal, not shares moving around the office. As I understand it, the source of most of the large private purchases by board members is transfers from George. I would love to know the detail because it looks to cosy for my comfort level. If I had the detail on price and source of funds I may feel differently. (IMHO)

5. If oil is struck and it becomes public knowledge, wouldn't the share price at which the company resumes trading be affected?
A: Yes, and so would a dry hole.

6. If the company did start trading under a different name, would the bids for UN shares put in during the halt
automatically become pro rata bids for shares in the new company, and be filled as such?
A: as i understand it that would happen automatically.


To my mind the business of buying in to UN could be more complex than it looks, and I certainly would be hesitant to risk selling shares in CIVC during the halt in order to buy into union, though if I had a bit of spare cash, I would maybe risk a punt.

A: UN shares are held by very few shareholders, at this time, so it may be difficult to get any great amount of shares until the SPE shares are available for trade. (not sure if a 4 month hold will apply to them of if the whole 48 million shares can be traded as soon as they are issued. )

These are genuine questions by the way, and I would be grateful if any posters with a bit more trading knowledge could come up with some answers.

A: I do not have more trading knowlwdge than the average poster. Accounting is my field of expertise and these answers are my intrepretation of the rules only. Do your own DD.