Bonterra Energy Corp T.BNE

Size

[kavern23]

Crazy to think how size matters so much right now. First it was OBE signalling have to get to 50k now BNE with wanting to be over 20k.  
I have too agree with them, in this market the large instutions want bigger companies and stock market value show this.

IMO the easiest way for BNE to create value isnt a dividend it would be if they can get a merger done at a fair price, just being bigger will give a better mutiple.

BNE market cap is 271m...look at surge and cardinals...both over 20k boe.
If Bne was a 23,000-24,000 boe company wouldnt the market it take it too at least 800m market cap.

But one of the true advantages if they can get to 20k plus from a buy is could just run a 120m 1 rig capital budget for combined 20k company...to maintain production and then have ability to throw 60m at montny if desired.

[TheRexmember]

I was impressed with the market action on OBE stock price. Thats the first decent reaction I have seen to a growth plan in quite a while.  maybe BTE wont be buying them for a while, lol.  BNE can afford to pay a dividend too. A 5% dividend would only cost 10-15 million. They have a very large shareholder base that has been expecting it.  I would much rather see a couple of

[kavern23]

Market should be rewarding growth if it is profitable. BNE could afford a divy instantly if they could get Ricochet using share equity. Entrada lost alot of leverage this fall versus last fall when NG was 5.50. Not sure how low management would accept and not sure on Entrada reserves but if they are just average for thier size..in this market i dont think could pay more than 50-80 for entrada

[TheRexmember]

I think Ricochet would essentially be a merger of equals, so quite a bit of stock would have to be issued. Entrada would be bite sized and they bring a lot of Willy Green land.  I am ok with either. Ricochet would bring a lot more liquidity. I would rather see being weighted to buybacks with a bigger deal though.  and for Petes sake no long closing period where the stock gets killed.

[kavern23]

I think too many variables that are not public knowledge to even do a very good guessimate on equity exchange and value if BNE and Rico could ever agree to terms. IMo I would guess BNE has better reserves than Rico, BNE would have way more wells drilled after 2015 than Rico. ARC ran those assets at 10k that Rico has when they were putting some capital in but once they bought 7 generations they

[TheRexmember]

True on Ricochet values. No idea how much debt they have either. The land position is stellar and the team is pretty good. I was just using a flowing barrel number in my head assuming they produce 1o- 12k per day.  Entrada may have some gas but their JV wells with BNE had some great results. And it fits like a glove - very easy to integrate so much 50/50 land that is also next door to