RE:RE:Financing Options - Buyout/Asset sales opportunitiesSelling Kaybob would get them off the hook, then hope for higher oil and gas prices to generate some cash to spend on core properties, enough to maintain production or even grow 5-10%.
The best option, I hope, is sale to a larger company which can develop the assets at a much faster pace. A company like Arc, which is active in Ante Creek, would probably be interested.
As far as risk is concerned, I thought Rock Energy was higher risk, but it was taken over by RRX. The premium, however, was very small.
I thought ZAR was higher risk but it sold SE Sask asset for a great price and the stock went up from 0.45 to 0.65 in no time. I sold last Friday to buy more RMP just to watch ZAR trading above 0.80 this morning closing up another 25%. This is not a perfect game... Never was, never will but what matters is the end result.