Paramount Resources Ltd T.POU

CEO is all In with his own money.....

[MyHoneyPot]

POU is one of the few Companies, where the CEO is all in. 

How many Ceo's could add 135 million dollars of liquidity, and price the convertable debenture at the closing price, and avoid of lot of more expensive financing options. In fact he is so sure of his investment the companies debt is ranked subordinate to bank debt. 

Crown Jewel

How much additional risk is JR taking in this financing, well he is drilling the crown jewel FIRST is he not?
Karr has many wells that produce over 2000 boe a day. The wells at Karr quite regularly produce about 2000 boe a day for the first 90 days. This is why the economics are soo superior. 

Wells Licenses

Karr well licenses are appearing daily, and the question really is how many wells do they need to fill up the Karr plant? Well i don't think the answer is that simple because of heavy liquids loading, and liquids handling, and high pressure new wells, coupled with field compression tuning, NGL liquids, sour gas, water handling, condensate. 

Plant Capacity
Karr now has 150 million cubic feet per day of total raw sour gas handling capacity, including 70 MMcf/d of sour raw gas processing, 30,000 Bbl/d of raw hydrocarbon liquids handling capacity, 2,200 Bbl/d of natural gas liquids recovery, and 28,000 Bbl/d of water handling capacity.

Karr has the capacity now all POU needs are the wells, so all that POU has to worry about the operational risk associated with drilling 20 wells? My guess is 20- 25 Karr wells in 2021.

Hedges Likely 
I expect POU will hedge up a bit with all this capital spending.

How much will they add to the 2021 Capital Budget, my guess is this 150-200 million dollars, however their free cash flow my guess will be higher then 100 million, my guess is more like 150 million. 

CEO Steps Up (Best CEO of 2021)
Name another company where the CEO stepped up like this to create 135 million in liquidity. 

POU the best managed and best Oil investment in the entire Planet.

IMHO

[MyHoneyPot]

2000 boe first 30 days not 90 days. IMHO

[retiredengexec]

I agree with that Jim is the best CEO along with Jim's brother Mike. He is for sure showing faith in His baby. 135 million is huge. That said it helps to have a dad with a billion dollar inheritance. But it looks like the kids are as good as old Clay. Honey you are opening my eyes here. Your work is excellent. You should be in bd group of any of the companies you follow.

[not4anymore]

JR gave himself one 'sweet deal'!

[MyHoneyPot]

Not really he put 35 million more of likely his own faimly money at risk. Most Ceo's in most oil companies are not savvy enought to do what Jim did. He found a low cost way to appease the banks and att 135 million in liquidity.  Just the fees and comissions for a Morgan Stanley of RBC to raise capital would be like 20 million.  A great deal for all the loyal share holders of POU

[Raymondjames]

Agreed. JR's interest is aligned with shareholders who are committed to the company. If you want a trade, pou is not for you. If you are an investor in a business, then you like the move he made.  I have bought a whack more here. I slowed down at the end of day out of sheer exhaustion. I will be back on the buy tomorrow morning. The shorts are playing with the fire. More in the war

[bogi]

Oh Mr. Raymongjames - or Mr. Knowitall.  Watch  POU  going to last years Oct. low . And you are buying tomorrow ?  You are closer to the top than the bottom . Raymond James would not  do a thing like that .  I will buy POU in the low $ 3 range - watch me . 

[Raymondjames]

Idiot. 

[Raymondjames]

Bogi - bought a ton at $5.90. Thanks. 

[Raymondjames]

Idiot. 

[RookieReturns]

I find this enter-taining.

[Raymondjames]

Lol.   $9 is the next stop. 

[Raymondjames]

  I'd be buying more at $3 too if it ever got back to that level. How many shares do you have boogeyman? 

[Sugaree]

Why fight the tape? Good luck with that "low $3 range" purchase.  For my golf analogy. I love shooting eagles and birdies, pars are never a bad thing, but avoid "bogeys" at all costs. Watchingt this rise and missing out in the hopes it will fall drastically, is IMHO most certainly a bogey/bogi.  

[Raymondjames]

Sugaree  I will become an insider if the stock gets back to the $3s. What the Bogeyman doesn't understand (I know that I'm a knowitall) is that there are 20 or 30 large investors with deep pockets who continually buy the dips and large. Not 5000, 10000, 15000 but 120000 on any given day. The February call options were also lighting up.  Honeypot's fundamental analysis is

[Raymondjames]

And the February$2c, and $2.50s and $3c add up to close to 200000 shares. Deep in the money and very profitable. Very. 

[Sugaree]

Maybe we get another Gamestop type run up, lol. Question RJ, how can you be so confident these call options are mostly be bought by those that want delivery, and not just trading them?

[Raymondjames]

confident. 

[Raymondjames]

100% confident. 

[Sugaree]

RJ, my guess would be these 25 or so large investors are just that, investors, not traders. That being said, i would think they will be holding their newly acquired shares for the long haul, therefore technically reducing the float! With such a small float to begin with, a couple million shares or so out of the market can make a difference in moving the stock up! HP, yupper over $7.00 this week!

[Sugaree]

Wonder if bogi will ever show his sorry little a$$ on here again after this ridiculois post below on Jan 27 when POU was around $6.25 and now at $7.60.

[Raymondjames]

Glutton for punishment so likely will reappear on the first red day.  Sold a few at $7.80 and bought it back at $7.41. We will crack $8 soon.