RE:RE:New operations update outI still think Obsidian will be sucessful in either current bid or potentially some other form.
Instutional investors hold the cards here as insider ownship is only 15% according to the presentation. This large investors are likely to have a bigger picture timefram then average retail investor who is usually short term focused.
The problem with drilling cheaper and shorter wells in Pembina is the total reserves are not that high per well compared to Willy Green and elsewhere in Cardium. Drilling cheaper Pembina wells increases production very quickly (which excites a few small retail investors) but what do you think these 33 wells will produce 18 months from now...so little NG content. But 18 months from now Willy wells are producing NG and NGLS at a decent clip...
But a combined company a much larger company (obe + BNE) could throw a 100 million capital budget in the very best drilling locations. Also the synergy savings in less employees salaries.
These are the type of thought processes instutions have....
What advantage does BNE have right now staying a alone? Even if oil increases their FCF they still are not spending 100 plus million drilling...BNE needs 100 million type budgets if they want to go past 15000 BOE in my opinion...yes or no?
The only advantage of staying alone seems to be BNE is worth so much more right now versus if exchanged for OBE. ...is this such a good indictror
lol only 125k shares traded...not much volume....
Another question...why doesn't BNE issue 20 m shares at 3 bucks? Raise some money...lol what is the answer to this question