Clarion Finanz turns out to show Merrill Lynch how thing must be done in a partnership. It has converted it’s part of the debt into equity, with a conversion price of $22.65, a price we’re rapidly approaching.

This shows they can only be very confident on the drilling at Elk4. It’s a very bullish sign, there is just no other way to read the situation. The fact that Merrill hasn’t done a similar deal (yet?) distracts somewhat, but not a whole lot, it probably indicates that they are just a little more greedy than Clarion.

Since the three of them have a common interest, Liquid Niugini, the proposed LNG facility, that’s not the way things are done.