RE:RE:RE:RE:RE:Cardinal Energy Ltd. Announces Closing of AcquisitionI hope they keep hedging like they have been doing...CJ doesn't have an expsensive drilling program so hedging isn't as critical compared to a company with a 120M second half capex.
The Venturion hedges make sense as they needed to have CF certain to help fund the cash portion of the takeover.
I personally like the fact CJ manageent has let it ride and not hedged more.
They should wait until oil is 90 cad and then lock more in. Time will tell but CJ shareholders are gamblers. Let it f*ckin ride and dont hedge. Faster the debt can be paid off id this all works and oil hits 70 plus for rest of 2021.
GL to the longs
rodster55 wrote: Management M&A of Venturion was a no brainer at the time as it was 16% accretive. I believe that many privates will be looking to monitize their asset as buyers are limited. My point was there was sever damage done with limited hedges going into the COVID year. Cardinal has low decline rates with limited capex as shown in the torque graph.
The pain of hedge are now limited now and my point was what is the plan going forward. Will they let the hedges roll off completely again ? I hope they are alot quicker to react than last time WTI went into the toilet or better yet layer some hedges in going forward. Considering the oil price is in backwardation we have the best of both worlds now.
Does any think that Astra Oil would be a good fit before the August deadline ?
GLTA Longs