SATURN OIL AND GAS - WARRANTS In response to the mention that the fact the warrents are are of the money ? I actually beleive even though I have bought warrents , that it's the warrents expiring that give this deal its merit.
This deal keeps the price artificially lower , therfore the warrents won't be cashed in ( hopefully ). The reason being is we would get from the proceeds ? It's posted the avarege strike price, but let's just say 40 M warrents at 3.75 ? So I believe that is $150'M. I think they actually pay out $140 M if my memory serves me correct.
So we get 150 M for those warrents and those warents are equall to 1/3 of the share float post transaction pre warrents being exercised that will be available post consolidation. So I feel 1/3 of the company is worh more than 150 M So if we save 100 M dollars because these warrents don't cash in We are essentially killing the warrents , saving negative dilution , saving off of the true value Of 1/3 of the company share float , less 1/3 of rge debt Is what that cash should be So if 1/3 of the production could be sold for 350 M less 1/3 of the debt 150 M so your left with 200 M or 50 M more than you got exercising the warrents , or $.044 cents a share. Add that to 2.11 You also kept if the warrents don't get exrciced ? You have $2.55 looking at it VERY LOOSLEY ! But having those warrents cash in isn't the end of tge world for me either It means the stock price is higher Much higher
more shares more liquidty, up to this transaction there really wasn't much volume , so having more shares out there , being larger , we will attract more money , because the Eric Nuttals of the world can't make money on company's thet have no volume , that all changed with this agreement .
So your upset that you aren't giving away 1/3 of your company for a lousy $ 150 Million dollars ?
So look at it this way ? You have three world class acsets , the OXBOW - the VIKING , and the mix bag of the new production ( we will count that as one ascent as it's perfectly valued at ifs market value ?) it is more than half the production post sale. So would you sell any of these ascents for $150 M. The Viking ? The OXBOW ?
Because we would be doing massive dilution and is the worst asset we have worh only 150 M ? Cause 1/3 of your company for $150 M.
We are best to just crush away at debt , and I don't know but this asset might need a lot of attention so to get it , understand it , witch you know they already are familiar with the asset because they probably helped light steam and or Petrobakken identify drill locations , so they probably have or had a better understanding of what they were getting because if there previous postions.
So those Warrents would reduce debt and the warrent holders ? I don't begrudge them as I am one. However , selling off 1/3 of your production for $150 M. So you
If I am wrong about how I am looking at this please let me know. I am always wanting to learn.
So I think we chomp away at debt , we will close on this deal there is no doubt. Its a win win.
Also finally my comment about Wozniak - and what not , yes over the top. !! However , I wanted to make a point , these 2 guys they should have a leg up on the rest of the players from all there workings finding drill locations
So yesr end we are forecasted to have $325 M in debt and we are going to be pumping 27000 boe.
So 6 months from now , we will be looking at new better financing., we will have more shares in the public float , creating better buyers or larger institutional investors
I also think we have to keep a eye on the oil price I feel we are going higher , but I see some build ups that make sense However , it's a build up it's a fact
China does what China does and that creates a floor
So we will see
Good luck Thank you for reading my ramble and don't listen to do anything from a board like this So do your homework