Second Wave Petroleum Inc SCSZF

RE: RE: RE: RE: RE: Economics??

[vltn59]

My understanding is that SCS/BAM turned down an offer from cpg that was in the $3.75 range back in April this year.

Fundamentally, I don't think anything has changed for the company since that time other than production is up a bit and the share price has crashed since no buyout agreement.   With the share price so low I don't think mgmt would issue anymore shares and the debt level while not extreme like arn.v is high enough already.  So I don['t see any way to finance expansion other than with the $40~$50 million of operating cash flow.   That's enough to grow production a bit each year, however I think mgmt will come to their senses sooner rather than later and sit down at the table with cpg and work out a deal.  There's no doubt that cpg wants to consolidate all of the swan hills area including scs remaining properties.