Interesting acquisition...........By Advantage.....BUT......i really expected MORE from them in order to compete with the BIG BOYS in the next few years. Like some aggresive and much needed M&A.on their part. But i guess this is better than nothing and the next best option after that.
https://finance.yahoo.com/news/advantage-announces-strategic-asset-acquisition-205000444.html
I would have thought & believed that Advantage would be looking for a suitable dance partner to team up and supersize. Someone like Birccliff or Kelt. But i guess either they weren't able to a willing seller or werent willing themselves. So now investors are stuck with this deal, which to be honest, is really not that bad of a deal. $450M for ~14K boepd & about 45% of that is oil. Which is a far better deal than what that helpless dummKoff Canadian entity Bonterra got just a few months prior.
With this acquisition, this now puts Advantage in the same playing field as guys like Birchcliff, but in a much much better financial position. Since this was a private seller/operator Advantage purchased the assets from, it wasn't stated WHO it was. But i'd like to know for curiousity purposesand for my own benefit. If ihad to guess who the seller was, i'd probably guess Taqa or Insignia to be the one. And if it's Taqa, it means more foreign operators putting up the white flag & givinig up in Canada..... and heading for the exits. Whixh is NOT a good sign for the country.
But with this single asset purchase, it more or less puts Advantage OUT of play, out of the M&A scene for at least one year, well into 2025.....at the earliest.Which imo, is unfortunate for the company & the sector as a whole.
GLTA