Post by
MyHoneyPot on Jun 04, 2023 3:13pm
17.3 % of Nuvista Ownership -14,500 boe/day
Paramount forecast for 2023 is to produce around 105,000 boe/day, but is that the right number and is that what they are really producing.
Well we know that NVA is hoping to produce 83,000 boe/day in 2023 and pou owns 17.3% of them. POU owns about 14500 boe/day that is produced by NVA. So POU is already producing 120,000 boe/day but it is not seen in the CF of the company.
So is it unrealistic that POU in the purchase of nuvista is really only purchasing about 68500 boe/day because they already own the rest. The resulting company would almost be producing 190,000 boe/day.
Think of the saving in overhead, and the complementary land positions.
The shorterm target for POU would be 250,000 boe/day and should give the company a rerating.
In July this year the Nuvista can redeem their bond, and get out from those private placement restrictions on the company.
NVA + POU a match made in heaven, now we just have to purchase it at the right price, an accretive purchase, maybe we will raise some dough with a Clear Water sale, or sell Sultran, or who know what else is in play.
If POU can purchase 32.7 of the shares with cash and debt, then they would be almost no dilution to the current shareholders if the issues the rest in shares. 50% in POU shares NVA is pretty well a debt free company. In fact is could be very accretive.
Jonathan the NVA CEO owns about a million shares so i don't think he would have a problem with an 12 million dollar payday.
IMHO
Comment by
RookieReturns on Jun 06, 2023 1:48pm
MHP, I enjoy your posts and understand you actually have discussion with the CEO? Is M&A something you've discussed with them as a strategy? I appreciate that they can't disclose details but certainly their strategy could be talked about.
Comment by
WillyGreen on Jun 06, 2023 5:45pm
JR doesn't talk specifics on M&A other than to say we are opportunistic with an undrawn LOC.