RE:RE:RE:RE:RE:RE:clarified fund ownership - exiting
From a Stockhouse reporter "The terms of the merger were not disclosed, but Mr. Waterous was perfectly happy to discuss the rationale. Strath and Cona's assets "fit perfectly together," he declared, and together they will create a "premier company" that will be rebranded (aptly enough) as Strathcona Resources."
Not sure how Strath, whose only asset is at Kakwa, doing a reported 22,500 net boepd in Q1 2020, "fits perfectly" with the old Northern Blizzard heavy oil assets in SW SK. Pengrowth takeunder by Cona resulted in Lindberg heavy oil and a block of Montney gas at Groundbirch in NEBC so no real fit there. The best fit is the joining of the two names.
So if Strath's 22,500 boepd in the current market at ~ $30K boepd is worth something like $675MM gross (can't assess reserves or CF which are far better metrics). Assuming no debt (which they probably have but can't assess) the value of 17% of Strath (16% direct plus warrants which need to be partially included if worth anything) is about $115MM net. Add land value of 200 net good sections @ $500 net acre (they say they have 400 gross but not all prime) so $64MM gross @ 17% is a further $11MM net. Total is a respectable $125MM or so. I would want out too and point at a fairness opinion, if there is one.
JMO.