Gear Energy Ltd T.GXE

Bought out

[CandyC]

With this transfer it seems like Gear might be looking to be bought out if they selling minor assets. IMO

[JTDOUBLE]

Looks like a special dividends coming here with these transfer of assets ..

[Bombyass]

So is this bad or good for gxe? Somebody explain please?

[CandyC]

ususally selling non core is good. It's only a small percentage but the sale should add a decent amount to the balance sheet. For a company that has stated that they are returning capital to shareholders should be good for us. There has been no NCIB buybacks yet so my guess will be the option of a onetime buyback which should be massive  hopefully they will hold off until after the

[JTDOUBLE]

NCIB already started in May 4 ... In furtherance of its objective to complete share buybacks, Gear is pleased to announce that the Toronto Stock Exchange ("TSX") has granted approval for Gear to commence an NCIB. Under the NCIB, Gear may purchase for cancellation up to 24,029,161 common shares of Gear, representing approximately 10% of the "public float", which is equal to the

[Luckyeleven]

No it wasn't approve until May 9th. This from the horse's mouth. Good Morning, The NCIB allowing buybacks was approved May 9, 2022 and will remain in effect until May 8, 2023 Details on the buybacks will be released with our quarterly reports. Additionally, all TSX listed companies are required to update their share count information to the TSX on a monthly basis  This information

[meritmat]

Also got rid of a bunch of inactive wells and facilities.  The reason for the hold up is the AER is making sure the company that's buying meets there criteria.    Big companies not an issue but little companies lots of requirements.  They don't want the wells to end up in the orphan well fund 

[Gord_Alberta]

Plus, there is something going on with Oil Sands price differential - not for the best. Selling that  sector near the peak is good for us investors. I bought more shares in this company last week because I like their plan!

[jleer42]

The majority of the SPR release has been heavy sour oil.

[navajojoe]

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[Luckyeleven]

There is about 14.5 million in revenue at today's prices for that 400 barrels a day yearly. If that wipes out 20-25 million in liabilities or more since the govenment subsidizes some of that work it just improves the balance sheet. Until we get more details not much to discuss. Im' seeing it as neutral to a positive move as they have no reason to do the deal unless it's accretive. 

[navajojoe]

This post has been removed in accordance with Community Policy

[Luckyeleven]

Agreed, but many deals work for both parties. If the buyer sees overall value in the deal and GXE feels they can replace that production down the road and show immediate improvement on the balance sheet it may be a good deal for both sides. Don't think this news is all that material in the big picture but then again until we get more details it is what it is.

[meritmat]

Just skimmed over the news release.  450 well bores and 84 facilities.   My neck of the woods a well normally pays the land owner 2500-3200 per years plus taxes to the local MD   3000@ 450 is 1.35m in surface revenue.  Plus taxes/weed controll/operations/pipeline mataince ect ect.   I'm guesstimating a bit here but you can see how this stuff eats into a company'

[meritmat]

I'm thinking it comes with a great land base.  Also good chance it ties into somebody else core area.  No idea what it may sell for but it was common for companies to dump assets for 1 dollar back in the day.   For Gear it gets rid of a bunch of Liability