GREY:TBTEF - Post by User
Post by
bshort92on Oct 03, 2012 11:05am
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Post# 20442369
Games being played
Games being played TBE's purchase of 3500 boe/d privately held Waseca will probably be finalized in 30 days since Waseca is primarily owned by Sprott and they are per a publically released announcement on board with the sale of cash and shares. Once concluded TBE will be a 19,100 boe/d firm assuming the shut in 525 boe/d NG property at Pincher Creek comes back on line after a summertime fire during maintenence operations. Sprott will own 9% of TBE, insiders an additional close to 5%. TBE CEO Jim Saunders has guided to a 2012 exit rate of 19,500 boe/d. At that point ask yourself is TBE a $720 million concern (250 million shares at $2.88)? Throw in $210 million of debt an enterprise value of $930 million. Seems undervalued (Valuation just under $48 k per flowing boe on the enterprise value). The absence of buyers keeping TBE from even attaining $3 a share amid $90 oil markets suggests otherewise. Perhaps another deal is in the works. Stay tuned.