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Pine Cliff Energy Ltd T.PNE

Alternate Symbol(s):  PIFYF

Pine Cliff Energy Ltd. is a Canada-based company that is engaged in the acquisition, exploration, development and production of natural gas and oil in the Western Canadian Sedimentary Basin and also conducts various activities jointly with others. The Company's operating areas include Central Assets, Edson Assets and Southern Assets. Its Central Assets include Ghost Pine and Viking Kinsella areas of Central Alberta. Its Southern Assets includes Monogram unit, Many Islands / Hatton properties, Pendor, Cadillac and Wymark, Black Butte and Eagle Butte areas. Its Edson Assets include Mcleod River and Pine Creek, and Carrot Creek. The Company operates and sells its natural gas to the common Alberta natural gas price hub, Alberta Energy Company (AECO), and the Company also sells to four other gas markets: Aden, TEP, DAWN and Empress.


TSX:PNE - Post by User

Comment by Maxmoeon Oct 31, 2023 10:32am
167 Views
Post# 35709132

RE:New acquisition

RE:New acquisitionNot what I bought Pne for. I wanted gas gas gas. 10% under pdp sounds good but that's before tax, with current oil/gas prices I assume. Ie not a bargain point to buy in the commod cycle. I'll do some more work before I pull the trigger but I'm not excited by this acquisition. Example question. They are paying 90% of pdp on 12.3 MM boe of reserves. Again, sounds good, but how much capital spending is required to pump those 12.3 boe? More importantly, what is Pne valued at by comparison? What % of pdp existing reserves of XX million BOE is Pne valued at without this deal? If 90% is good, would buying back their own stock be better if the assets are valued at 90% (no risk, no fees), or 80%? Or 50%?  What is the equivalent valuation. An SIB or aggressive NCIB might be a better option.  So I'll do the math but, most likely it'll be ....Yeah, screw it. I'm out. Good luck. 
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