Yangarra Resources Ltd T.YGR

OBE increased debt facility

[cfliesser]

I smell a takeover. Who knows what company, but why increase borrowing capity right now.

[Mickey2]

a buyback of 8 million shares was announced by OBE...i figure thats where the money will be spent.

[margaritaman]

That makes no sense. All things being equal EV would remain the same and you have the additional finance cost associated with carrying more debt. 

[cfliesser]

Yes I have never seen a company issue debt to buy back shares... Only for takeovers.

[Hendrick3]

And yet that is exactly what they are doing. 

[kavern23]

I see posters saying OBE is doing a buyback but where does OBE exactly say that in their latest press release?  I think OBE is more likely to be getting ready to buy out someone out as a 65 WTI price band may force some companies to have to merge.  Entrada for example...4100 BOE company...how are they going to be able to drill 4m dollar wells in a 65 oil enviro. The Russian war in 2022

[Hendrick3]

Kavern, as you know I am a large shareholder in OBE and follow them very closely. SL gave a return of capital plan presentation a few weeks ago where he outlined that they would initiate a stock buyback program and make efforts to expand the debt to take advantage of the massively undervalued nature of the stock. In the meeting he highlighted that buying back shares using even debt as necessary