I found this writing on the other board.What do you guys think of this assumption.

Folks,

Its tough when indiseders get a better deal than is offered to insiders etc (the deal is already closed BTW). But, as I posted earlier, these guys didn't have enough cash to fund their plans. It was obvious, and when management puts itself in that position, it is a buyers markets. Investors thrive on that, and just like you have no issues taking advantage of a good sale at a distressed store, they have no issues taking advanatge of a sale on shares at a distressed company. Don't think you wouldn't do the same. Its a risk you deal with when you "invest" in junior companies.

Face it - this wasn't a choice for the company, or a case of them taking advantage of a favourable sellers market. They NEEDED cash, so why wouldn't those in the know get in on a sweet deal. The question is, is this enough cash to get them trhough until there cash flow becomes positive? I tend to think it might be, especially if Oil prices stay at or above $80 for the next several months. If so, then while this may be a sweetheart deal for a selected few, it is still a good deal for the rest of the sheep.

For the bitter and twisted posters on here, I counted no less than 5 theories as to why the price was going down, most of them suggesting operational issues, and all stated as fact not speculation. What you demonstrated is that you like to vent, but don't really have any idea what is actually happening going on.

When there is doubt that a company has enough cash to meet medium term plans and obligations, alarm bells go off, and the price tanks. Rather than spending cash they don't have on exploration and getting the tax credits, they are maintaining exploration (proving reserves) without burning cash that they could not afford to burn.

Not sure I love this one (based on my concern as to they have enough cash), but I like it alot better today than I did yesterday.