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NAL Energy Corporation T.NAE



TSX:NAE - Post by User

Comment by pogohereon Dec 09, 2011 11:22pm
470 Views
Post# 19309444

BNN interview-link

BNN interview-link
7:25 segment
https://www.bnn.ca/Shows/Market-Call-Tonight.aspx
Re: possible buyout:
A somewhat similar situation to Daylight:
No new production since ~Oct 2009 w/ the Breaker deal. The projection in Nov 2009 for 2009 exit production was 31k boe/d. Only approaching that now.
Half the current production was purchased since '07:
Aug '07: Seneca: 4400 boe/d
Feb '08: Tiberius/Spear: 925 boe/d
Mar '09: Alberta Clipper: 1500 boe/d
Aug '09: Spearpoint: 350 boe/d
Oct '09: Breaker: 6700 boe/d
Daylight also bought its production until property became too expensive. It made one last humongous buy of the Duvernay last summer (?) for $100 mil. In hindsight I'd say management knew it would sell and enhanced the assets with the Duvernay purchase after selling off the "non-core" properties in late '10 and early '11. DAY management was rather good at buying and selling properties and companies.
A company goes forward with what it knows how to do. If it grew by the drill bit, it grows by the drill bit (with an acquisition here and there as opportunity presents itself). If it grew by acquisitions, it either keeps acquiring or it sets itself up for acquisition. NAL has good properties to sell and no demonstrated ability to grow by the drill bit.
Daylight fell rather fast right into the sale. A NAL sale would duplicate the Daylight story.
Like the man said, use or flush.
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