RE: RE: RE: $$ per flowing barrel of oil equivalen I don`t think I could have ever duplicated your calculations because I wasn`t privy to your economic value assumption for Nat Gas production. I did think you were excluding the Nat Gas and we just calculating the liquids only production valuation - albeit without using the debt in the numerator. Thanks for the clarification.
I became a unit holder of both companies on the same day back in May 2009 and hoped to prosper longer term. In both cases, I have regularly crunched the numbers, followed by brokers prognostications and totally missed the boat when their prices spiked up and I could have exited my positions (temporarily or otherwise) with a tidy profit. In both cases I have subsequently added units or shares and, excluding dividends, the results are not great.
I really hope this combination changes things for the better. Both companies have some attractive assets and with the current malaise in Nat Gas pricing, PGF has the financial capacity to exploit the oil opportunities. That said, if Nat Gas prices languish for a very long time, I would not discount the possibility of a divy cut at Pengrowth. I hope that the majority of NAL shareholders view the combined entity offers a better opportunity to prosper and collect a sustainable divy, even if it becomes smaller. Clearly they are circling the wagons here with a combined CAPEX budget of $625M, $200M lower than the two CAPEX budgets announced individually.