RE: RE: RE: RE: Spyglass- strong takeout candidate The merger makes sense to me.
Woods does not want to stay at Pace. This indicates to me that Pace has some challenges ahead.
The stock has performed very poorly given its high book value, reserve levels and 10%NPV.
Without the merger we are stuck in the sub $3.00 level, no dividend and no clear path forward.
With the merger we will get a $3.40 ish stock price and a 13% dividend while we wait to see if
management can comfortably sustain the dividend. With Spyglass we will have a lot of prime
oil land that Charger brings to the table. Put together with the prospects of Pace's oil plays and
we could well be drilling our way to prosperity getting a 13% yield while waiting.