Yangarra Resources Ltd T.YGR

Thoughts on Cardium's companies Q3's....

[kavern23]

If we look at Petrus, IPO, BNE, OBE and YGR share price's since Q3 release:
IPO, PTQ, and YGR are all similar to being close their near term high for last few motnhs...these companies are all within 10-15 cents of it...YGR is 3,02 and hit 3.17 as near tem high. Weathered the storm compared to BNE and OBE.

I think further is evidence that once oil prices get to a level of stabilziation M and A are done again, BNE amd OBE need to change their cardium business models. Market isnt going to give their share prices the proper value those companies deserve in current format.

Sure BNE can eventually pay a divy in current format but they turn into a non growing value play. 13000 boe is small production to be in this bracket.  Obe is in same boat with their cardium assets. And bne and obe are not buying new virgin land like Petrus and YGR.

BNE is crashing right now as I think some investors are pricing these companies like oil will be 75 in 2023.  BNE could unlock alot of value and be valued better if they combine thier cardium assets with obe's.  Lots of cost cutting that could be done. Have BNE management team manage this new cardium focused company. OBE current management team manages OBE with just PROP and Viking. Prop has the potential to be a full time job for a management team...looks of moving parts and opportunity in clearwater still.  I think this would be valued better by the market. It would have a really stable decline rate for new bne/obe cardium company.

BNE is just slowly grinfding away each year, and drilling lots but nothing with homerun potential. Need to go back to their strengt which is BNE as 4000 BOE of legacy production that maybe declines at 1% a year. Combine and get the production size to be a powerful dividend paying company.

Good for OBE's management team as they have PROP and Cardium and markets like steamlined companies.

OBE and BNE shouldnt be building sperate gas plants when land is side by side.

I agree with the fully that YGR's startegy should be hammering the drilling rig. In theory YGR can run a drilling rig full time and also grow FCF q to q if the wells can keep coming nicely. Excited to see what 4 new ferrier well will be that curewnrly drilling first on.

And new land should be very nice, little vertical old wells that have taken pressure away.

[fullyautomatic]

Agree with your most of your points here. Something about OBE really rubs me the wrong the way, it started with how SL assumed Fink would cave. OBE acted poorly during that time and it put them in a bad light. Then the never ending bonuses for managment. I wouldn't surprize me that a number of the CDN ceos don't really want to deal with OBE or see them succeed. Even though I tend to agree

[TheRexmember]

Hopefully the OBE ship has sailed. Loading up on a sleazy level of salary, bonuses and options, refinancing the debt at 12% just so they could hit exit production numbers and pay the management just turns my stomach. I dont want anything to do with them.  WCP also has a huge presence in the Cardium I would even take their stock, but obe, no thanks. YGR would also be an interesting merger

[kavern23]

Not defending OBE's management team but they have made decisions with long term focus always.  OBE has never seemed so close to end of the rope financially compared to BNE. BNE sole focus last few years has been on debt survival while OBE did buy rest of PROP which was a bold risk. It was worth the interst rate. My guess on OBE's strategy will in 2023 and beyond will be to scale back

[Hendrick3]

Thanks Kavern for bringing some balance. I own both BNE and OBE which are both undervalued in my book. Fact  is BNE was never worth 2 OBE shares. They missed that opportunity but there are still plenty of reasons to merge. BNE is worth 1 OBE share and maybe with premium 1.25 shares. They can both thrive alone but would be better together. No question though, Fink blew it. Clash of

[TheRexmember]

Be interesting to see what comes up for sale in the Cardium. It is pretty big - lots of bne land is quite a bit further North than YGR. the issue with a tightly held stock is that the guys with the most stock want the paper to defer taxes - and they didn't want obe paper. Obe is a much better company with 100% of the prop assets now and maybe the clearwater acreage will prove up. Not all

[kavern23]

Thats the thing Rex...when OBE spent so much cash earlier in 2022 at that land sale....they basically singled PROP is going to get a large part of future capex. That land would be 5 years and OBE woild be eager to start getting as much of land "held" while oil prices are good. OBE could easily put Cardium drilling to mainatin mode with only one rig. Thats the problem for BNE