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Cardinal Energy Ltd (Alberta) T.CJ

Alternate Symbol(s):  CRLFF

Cardinal Energy Ltd. is an oil and gas company with operations focused on low decline oil in Western Canada. It is engaged in the acquisition, exploration and production of petroleum and natural gas in the provinces of Alberta, British Columbia, and Saskatchewan. Its operating areas include the Midale, South District, Central District, and North District. It has over 730 million original oils in place (OOIP) and its low decline production of approximately 3,200 barrels of oil equivalent per day (boe/d) is supported by both water and carbon dioxide (CO2) enhanced oil recovery (EOR). Its South District operating area is located east of Calgary in southeastern Alberta and produces medium gravity crude, as well as liquids-rich natural gas. Its Central District operation is located in East Central Alberta, which is focused on producing oil from multiple, large original oil in place (OOIP) pools. Its North area includes Grande Prairie, Clearwater, House Mountain, Mica, and Mitsue properties.


TSX:CJ - Post by User

Comment by sclardaon Feb 05, 2021 9:41pm
152 Views
Post# 32491519

RE:RE:RE:RE:RE:RE:RE:Smart Management

RE:RE:RE:RE:RE:RE:RE:Smart Management giovinco

Rational is to get rid of the 1.25 option to convert snce price crossed the mark. Not sure if it was good timing since stock price was taking off. It is same as equity raising at 1.25.
All will convert as long as market price is above 1.25 and some will sell right away causing share price to be stuck for a short term. i.e. short the stock now and then convert at 1.25 or sell what they have already and convert at 1.25 to be at the same net risk exposure
Selling pressure will cause the share price to be stall before taking off again.
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Its not really like an equity raise via a private placement at $1.25 as CJ does not get any cash from debenture conversions  and has to pay out the cash instead for those who dont want to convert which will be payed out by the new notes which are a new debt for the company .

The main advantage is if a lot or all convert the $28 million in Debenture debt will be converted into shares and the debt will disappear at the cost of aprox. 20% dillution of  CJs shares. If the shares are not converted the debt will be transferred to insiders at higher intrest rates.

 At least insiders are showing confidence in CJ.


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