RE: RE: RE: RE: Nice development for Bankers...... Just think BC if there was an annoucement that BNK got an offer for $7 (6x 2013 cash flow). There would be a lot of happy folks on this board as even those that have bought higher than that have likely done some averaging down as the share price dropped down to $1.35. The higher the production and cash flow gets, the more tempting it will be for a senior international to take them over. The main point with Bankers is that the purchaser is not buying a bunch of fields all over the place but rather a single Albanian based asset which happens to be the largest on shore field resource in Europe.
For me it gets back to ensuring that the reserves are as economically recoverable as possible. Baytex in Canada has about the same size 2P as Bankers but their production is over 50000 bbls per day and their production development wells have IP rates of ~500 bbls per day as opposed to Bankers 100 to 120 (speaks to the well economics disparity). Baytex is a highly respected heavy oil producer but their production and reserves growth rates have only been 8-10% per year so it seems that it is not so much the annual rate of growth but capital efficiency.