Paramount Resources Ltd T.POU

Alternate Symbol(s): PRMRF

Energy Oil & Gas E&P

Paramount Resources Ltd. is a Canada-based energy company. The Company explores and develops both conventional and unconventional petroleum and natural gas. It also pursues longer-term strategic exploration and pre-development plays and holds a portfolio of investments in other entities. Its principal properties are located in Alberta and British Columbia. The Company's operations are organized into three regions: the Grande Prairie Region, located in the Peace River Arch area of Alberta, which is focused on Montney developments at Karr and Wapiti; the Kaybob Region, located in west-central Alberta, which includes the Kaybob North Duvernay development, the Kaybob North Montney oil development and other shale gas and conventional natural gas producing properties, and the Central Alberta and Other Region, which includes the Willesden Green Duvernay development in central Alberta and shale gas producing properties in the Horn River Basin in northeast British Columbia.

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Paramount Resources Ltd > NVA Shares - 430 million dollars of value to POU

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Comment by Konaboyon Mar 07, 2022 8:12am

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Post# 34489439

RE:NVA Shares - 430 million dollars of value to POU

I think it's an interesting play, two companies for one, so I don't have any additional NVA shares.

Question is, what is the medium/long term play? My sense is that POU is not being recognized for this asset, altho I have not looked that hard at the numbers.

MyHoneyPot wrote: POU own 450 million dollars worth of NVA now, and if you look at their latest presentation they expect to reach their net debt target of 300 million by Q3, of 2022.

The net debt target does not include the tons of investments that they have in NVA shares etc, which currently is worth about 550 million dollars. They used 7 dollars for NVA share value in the presentaion, NVA is currently trading for $10.70.

There is no way that NVA wants to buy the shares back from POU, or that POU would accomondate them with prolonged sale process. You are talking 40 million shares, or 20% of the company. To many shares and they are not in the business to finance NVA.

Plus at 10.70 those share are worth almost 430 million dollars, NVA would not want to pay that out of their FCF, it is simply to much money for a share buyback for NVA. They just excaped a near death experince of going broke and they have bonds they want to get rid of that carry a very high interest rate.

I think NVA is a great company and those NVA share will go to 12 dollars and if POU pays off it debt, which it very well could they could be a 30% NVA share divvy for pou shareholders, worth about $3.60 a share.

Don't expect NVA to buy them back i don't think they really want to and their share float is reasonable.

IMHO