Paramount Resources Ltd T.POU

$100m closes NVA

[Raymondjames]

Strath fmv is $100m. That settlement buys Nva. Scale up to 120k bpd immediately. Nva also has $100m liquidity. So you take the Strath money, buy NVA at 70 cents, then use their money to pay down your debt.

[enterusername]

It will be higher  than 70 cents

[Robertboblaw]

Yeah if they can get $100 mm for strath. I think there will be a long legal battle over these strath shares. Doubt they will just give POU a $100 mm without a fight. I highly doubt this battle will be resolved too soon but hopefully they get $100 mm. To buy nuvista full out for $100 mm would be great for pou.

[energee]

The value of the Strath shares will be documented somewhere in a fairness opinion. The writers of the fairness opinion are probably under the micro now. I expect POU will get a fair $$ for the Strath shares. Perhaps $80-100MM.  The market is not efficient right now, with no liquidity and lenders grinding clients, which affects all deal metrics. With POU now owning 17% of NVA, which is quite

[Raymondjames]

Paramount has few a more levers to pull to raise $$$. Nobody will step up to take on Pou over Nva. It's been trading sub $1 for a while and not a bid. 

[enterusername]

been 6 months since NVA traded below 2$...traded at 1.20 not too long ago.

[Robertboblaw]

As someone pointed out POU will likely hold off on any further NVA share purchases for the time being. Let anyone come out of the woodwork to make an offer on NVA and benfit from any premium on said offer. If no competing offer emerges, they may be able to take NVA over at even a lower price further down the road imo

[Raymondjames]

Pou isnt looking for $20m on their $10m investment. What's 2.5 more wells built in the grand picture. Time to take over the Montney. 

[pablo87]

Though I would hold off for now to see how this plays out, I would prefer owning the combined entity than NVA or POU individually at this stage. Nuvista has a lot less overhead than Paramount, combining the 2 will almost certainly result in much lower overhead on a per boe basis. Nuvista doesn't have that much abandonment liabilities either - another positive. Finally, if they can sell an

[jspaceman]

i suspect it will be a stock for stock merger. reason being every PENNY of cash for these two bloated entities is precious and will be needed to shore up dangerous looking balance sheets. look for a "merger of equals"...equally debt loaded producers.