RE:RE:The problem for…Hi Chris, yes I do have big aspirations for PRQ.
I have followed Don Gray from PEY for almost 20 years and have watched that company go from under $2/share to over $50 (then down under $2 again!).
I've made money along the way several times, most recently once again these past 2 years accumulating a large holding average $4.19/sh (that I still hold).
About 5 years ago there were reports in the press about Don buying into a company called Petrus. I following his lead. I was buying up and over $3/share.
Then everything fell apart in the Canadian nat gas space.
Worse for PRQ were its loans and their debt covenants. Production collapsed.
Way before it was even clear whether the company might survive, I stuck a whole year's TSFA in at 9c/share...
Then the Grays announced they were restructuring the PRQ debt themselves and subscribing in shares at 35c/share.
I bought more all the way up to 78c/sh. If its good for them, it's good for me. And they have put Millions in...
With the financial restructuring all sorted and the hedges coming off and drilling re-commencing again soon and of course with macro world issues; I think PRQ is a win-win from here.
Moreso that the debt will now go down following the Rights issue.
Moreso now that there are 4 x Gray siblings, rather than 1.
What do I expect? I expect people to learn from their mistakes. There have been many considerable achievemnets by Peyto these past 2 decades but the hedge book is not one of them.
I expect PRQ to be a Peyto version 2, basically replicating that company's exceptional first 10 years of growth, but WITHOUT THE HEDGE BOOK continuing in a backwarded market, up and up. That's not smart.
Regardlerss, they are drilling again and I believe it's not wishful thinking to expect them to get to 50-60k b/oil equivalent/day in about 6 years.
They have the same people around them as PEY, incredibly deep access to intellectual/technical capital as well as 4 rich backers. In fact, Don, Chair of both entities, has a SMALLER declared share position in PEY than the CEO, Darren Gee, and Don was a Founder of Peyto.
He of course has a very substantial holding in PRQ and by a factor of tens of multiples of shares compared to PEY.
Given that simple fact alone, where might you think he will be focussing his entrepreneurial talents going forward?
I think the question answers itself.
I have subscribed for 100% of my Rights plus have bought Rights to subscribe for an additional 135k shares. I doubt whether there will be any "unsurscribed" capacity remaining to apply for on Closing (which you can apply for ONLY If you take your full 100% allocation first).
And with the Rights trading at over double their Black-Scholes value shows me that. People want them and people are buying them up. As they expire worthless very shortly, there is only one reason why they are being bought; to use to subscribe for new Rights shares.
Good luck & do your own DD!