The new entity named Prairie Provident, has three oily core plays (Princess, Evi's waterfloods and Wheatland) with high IRRs even at current prices. PPR has also several non-core producing assets to sell and raise additional cash, if needed. See slide 19 of the new presentation below.
Before the merger, AEI's insiders owned 26%. See AEI's presentation below.
Before the merger, Goldmand Sachs (yes you read it right, this is Goldman Sachs) was the majority owner (>50%) of Lone Pine. Actually, Lone Pine went broke in Sep 2013 because of its high debt that was primarily owned by a Goldman Sachs' subsidiary. This is how Goldman Sachs ended up being Lone Pine's majority owner. Goldman Sachs, the creditor, hired Tim Granger in April 2013 to turn things around, but it was too late. Nobody could turn things around in 4 months because Lone Pine had a ton of debt, so it filed for bankruptcy in Sep 2013.
Proforma the merger, AEI's insiders and Goldman Sachs together own more than 50% of the new entity named Prairie Provident.
As a result, the insiders' interests are fully aligned with shareholders.
According also to the latest presentation below, this new entity PPR doesn't have any debt problems because it has very low leverage (Net Debt to projected annualized Cash Flow is less than 1 times).
According also to the latest presentation below, bank debt is just C$5 million on C$55 million credit facility, while the annualized Cash Flow is C$24 million based on Q4 2016 Cash Flow of C$6 million.
The facts:
and this one: