Living,

I just posted this on another board in response to a query. Hope it might help.

If you are wondering whether bringing in new equipment from Alberta will be of benefit to the project, or is it just a ploy to delay drilling until after the UN merger, then my guess is it might contain elements of both. As to finding another reason to delay drilling if the merger doesn't go ahead before the equipment arrives, I would say they would be hard pressed. I'm no lawyer, but I imagine they would have to demonstrate that the delay was in the interests of shareholders. I would agree, that extra caution with the drilling is for the ultimate benifit of investors. However, an artificial extension of the project would not be of benefit.

SPE, as a private company, has no fiduciary duty to the shareholders of either CIVC or Enegioil, but the directors of these companies do. If they suspected that SPE, tight hole status or no, was artificially extending the project, then I think they would have to take action to put that right, or be accused of negligence. In addition there must be a Joint Operating Agreement, and SPE would risk losing all or part of its interest were it to be in breach of that.

All in all, I don't think SPE has a lot of time to play with, or can find many more reasons for delay. If the merger doesn't get done in time, then tough, SPE will just have to get on with the drilling anyway.

Of course this is just my opinion, and there could be more knowledgeable folk around who could put me right.

Regards
Dunnock