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Strathcona Resources Ltd T.SCR

Alternate Symbol(s):  STHRF

Strathcona Resources Ltd. is a Canada-based oil and gas producers with operations focused on thermal oil, enhanced oil recovery and liquids-rich natural gas. The Company has three operations: Lloydminster Heavy Oil, Cold Lake Thermal and Montney Gas. The Lloydminster Heavy Oil has multiple large oil-in-place reservoirs with existing and expanding enhanced oil recovery (EOR) opportunities primarily located in southwest Saskatchewan. Its Saskatchewan thermal properties rely on the same steam-assisted gravity drainage (SAGD) processes as its Cold Lake Thermal properties. The Company is a producer in the Cold Lake region of Alberta. Its operations include thermal oil producing assets at Lindbergh, Orion and Tucker, with production from steam-assisted gravity drainage (SAGD) oil assets. Its Montney development is an active region in the Montney basin, the condensate-rich Kakwa, Grande Prairie, and Groundbirch regions, and produces liquids-rich gas.


TSX:SCR - Post by User

Post by askQuestions1on Nov 01, 2023 2:47pm
179 Views
Post# 35711832

Why would SCR buy ATH? Makes no sense at all.

Why would SCR buy ATH? Makes no sense at all.SCR has 35 years of reserves at a $35 breakeven.  ATH breakeven is $70.   You would have to be insane to want to buy ATH.  Weakerns you finacially permanently.  Just grow your production 8% per year at a very low breakeven cost with low declines.  That is their best option.

If SCR buys anything now it will be a private companies asset as those assets are way cheaper than public companies assets and they just can't borrow money.  Private companies are best if they went public and to ever realize a proper retun on their assets they would need shares to ride the valuation higher.
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