Paramount Resources Ltd T.POU

Slush Fund - NVA Shares

[MyHoneyPot]

You can get a sense of the love relationship between POU and NVA in their recent annual meeting, where JR only voted yes to picking a new auditor, and No to all the management and the board. 

So there is a little uncomfortable feeling of offside there. I think the NVA value north of 400 million dollars is a lot of cash, and he just carved off 50 million for Willesden green, but there is still a very large share holding there, and no one will buy NVA without first making a deal to tie up POU's shares. 

I think the threat is real, unless a better opportunity comes along for the capital.

I think the deal JR wants is that the long term future for NVA shareholders is better served as part of POU buy NVA has a wild idea in terms of the evaluation, and when you look at them the current production numbers and commodity profile is great and i think NVA is an assets they understand very well, and so its a good fit.

The challange is to get NVA to feel comfortable as a part of pou.

I don't think they would offer a big premium, especially if they were using POU shares right now.

3:1 is my guess

IMHO

[BuyLowAndHold]

JR's votes seem amateurish if you ask me.  The motions pass comfortably despite that.  I agree that no one else will acquire NVA due to POU's 16% block but I'm not sure how a 3:1 acquisition does anything for NVA management or shareholders?   Unless there's a premium why would they agree to it?  If they hold onto NVA shares they'll have a pretty

[Raymondjames]

Nothing JR does is amateurish. Imagine Nva reducing the float with their NCIB and our stake increasing! Pay a dividend, thanks!  

[MyHoneyPot]

If you knew how many boards JR sits on, all the companies he is part of, and how many major companies in the Patch that their core assets were developed as the result of a spin off by JR you likely would show him a little more respect.  POU value is like only 50% represeted in it producing assets, and other assets like private oil companies shares, public oil company shares, frontier assets,

[Raymondjames]

Honeypot - pou not looking to take out Nva. Maybe a piece but not the whole thing. 

[BuyLowAndHold]

That's fancy math when you use a future price for POU and the current price of NVA to calculate the premium to NVA shareholders. It's like saying I think NVA will hit $35 one day so it should be a 1:1 ratio. Time will tell who will have the better return over the next 6 months, 18 months, etc.  Both should be great.  My point is that if NVA shareholders preferred POU they

[Raymondjames]

Not happening at all from a pou shareholder perspective. 

[Raymondjames]

The reality is that pou has more assets than it can deal with for now. Why incur massive debt or dilute shareholders for Nva? Assets at Wapiti would be of interest but not the whole nut.