GREY:TSCAF - Post by User
Post by
Bigbadoilon Jul 09, 2013 5:26pm
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Post# 21597449
merger
mergerYes both DZR and TUS have common management and that is why some people" smell a rat".
I dont think Mr lamond is out to" screw anybody". Diaz has a large debt relative to its assets and is constrained financially. They are both partners in the Macklin pool which has o e of the best Wells. Diaz was holding TUS back on this asset as it has little capital. Now the merged company can progress development there.
Post merge and consolidation, the company will have 18.6million shs out with a 2012 NAV of $41 million. Taking off the assumed debt of 4.2 mill, that gives a NAV of $36.8 mill. Do the math the NAV on the new share count is $1.98!
Now TUS is trading at about 4c so the post consolidation value (*8) =$32c
They are also about to drill 3 wells asap after the deal is done (July 15). These wells IP at 100BOPD. Current production for the combined entity is 660 BOEPD.
They usually get about $8 discount to Hardisty heavy for their oil. Hardisty heavy was trading at C$96 yesterday.
Extreme value here if ever i saw it.
Bigbadun'