Valeura Energy Inc. VLERF

Nice to see rational market action on VLE

[Carbonbull]

VLE for the next five years at least will be a cash generating machine , having both significant growth and free cash flow is a rare accomplishment in an oil company. So many options available to the BOD to consider , I for one hope they stick to the growth and cash accumulation startegy , and are very cautious in deploying shareholder wealth , no greenfield exploration risk , infill drilling is fine from producing fields.

[cyber37]

Coasting is not an option; if company is not growing they are stagnating. On top of replacing production company must always look for potential of expanding & grow. Thailand acquisition is all mature fields and infill drilling only accelerates depletion, brings it closer to a significant abandoning liabilities. VLE must explore options of adding a meaningful reserves so they can extend life

[Suppe11]

Imho wrong...you fell for the North-American-oiler-business-school. Stagnating=harvesting. Growth=raise sharecount + debt, but market cap stays the same. Depleting reserves for paying debtholders. It's always about "show me the money", the rest is fairy tale. If you can do both, fine...difficult with sub 80 oil prices (generally).

[wajac]

That's shocking news, Cyber! So when an oil company pumps oil they are depleting their reserves? Really?

[Suppe11]

I guess,  I'll have a last laugh. 99% casual investors, like you, think that depleting a ressource faster is growth. If you do that with debt/dilution it's just shrinking (value).

[cyber37]

Good point Sup…, this is precisely why I stressed here on few occasions the need to grow reserves for this company. Thanks to this acquisition I’m in the green with my VLE shares so now I’m looking if there is a longer term prospect here. Uninformed …or ignorant investors tend to focus on just daily production which is just ½ of the story. Without 20 years life span no serious institutional

[windymayor1]

Agree reserves r important but 20 year RLI is a bit of a stretch.  Tourmaline with a mkt cap of $20 B has a total Proved RLI of 12 years.  I would say 6-10 years is a resonable expectation and comfort level for any investor including institutional.  

[Suppe11]

He strechted it a bit....normally 10+ years is, what the big boys are looking for. A lot depends on the debt, of course....

[firstworld]

Mubalela, with USD380B assests shopped tgis around for years before gifting it to VLE. Why would any bigboy take it now seeing that it takes $250M year infill drilling to maintain with small declines a paltry 20K bbl day....not even worth looking at. They want multi BN reserves like Russia just secured in Iraq, with guarantted production life of 20+ years at 500-2M+ bbl day. Tgisnone is for

[Suppe11]

We didn't talk about the big boy oilers, but the big boy investors....

[wajac]

My question remains unanswered. Why did you go from a pumper in 2020 to a basher today?

[Oilandgas2023]

Because he is a idiot 

[wajac]

Yes they will have the cash to pursue other revenue generating opportunities.  With their experienced management team they will acquire assets wisely.

[firstworld]

Muba is a Qatar owned investment fund owning many assets.  They are the pinnacle of big boy investors answerable to no elected politicians  haha