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CanAsia Energy Corp V.CEC

Alternate Symbol(s):  CECAF

CanAsia Energy Corp. is a Canada-based junior oil and gas company. The Company is engaged in the exploration for, and the acquisition, development and production of, crude oil and natural gas reserves. The Company, through its subsidiary, Andora Energy Corporation, is focused on developing the bitumen resources at the Sawn Lake property using steam assisted gravity drainage (SAGD) development. The Company has working interests in, four heavy oil sand leases with 27 sections (24.25 net sections) of Sawn Lake Alberta Crown oil sands leases within the Alberta Peace River Oil Sands area. In the Sawn Lake Central area, it operates with a 100% working interest in two oil sands leases with 11 gross sections (8.25 net sections). In the Sawn Lake South area, it operates with a 100% working interest in three oil sands leases with 16 gross sections (16 net sections).


TSXV:CEC - Post by User

Bullboard Posts
Post by algroveon Jun 25, 2012 9:41am
507 Views
Post# 20050613

Closer look at the N/R

Closer look at the N/R

First of all, a 75% dividend structured as a return of capital is, for a Canadian investor, the equivalent of something closer to a $1 dividend on an after tax, cash flow basis.  The exact amount depends on how high an investor's tax rate is.

 

Second, there is this sentense:  "The distribution would occur in the course of a reorganization of Pan Orient's business".  I read this to mean that there is still a second foot to drop.  This would explain why such a long lead time before shareholder approval is being called for.  More than one transaction can be passed in that special meeting.  Think of a possible re-capitalized spin off of Sawn Lake to shareholders.  Large resource base, pilot plant already has all the needed governmental approvals.  Cost about $19 mil. which can be injected prior to spin off.  Baytex and others producing less than 10 miles to the south.

 

Third, the delay and the operational update within one week.  They must have been delaying the dividend announcement to co-incide with the operational update.  Must be good news coming.  Could not delay any longer, so they announce the dividend and promise the update within a week.  If it were not good news they would not go through that process.

 

 

Bullboard Posts