GREY:NOVUF - Post by User
Comment by
counterintuitive247on Mar 05, 2013 1:06pm
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Post# 21080699
RE: RE: RE: First Energy
RE: RE: RE: First Energy well in the oil patch typically when a company hits production of 5000 bbls of oil they need to decide to sell or grow. This case Novus is about 3300bbls stable and maybe 3500bbls of oil stable after Q1 ops.
The Novus management needs to sell to a new management team that can take it to the next level. A plausable plan I think is to use the Viking Cash to maintain a cashflow stream to develop another exploration property. I look back at the Westfire deal as a reference (its the closest / recent deal to reference). ie. The company was merged up to develop duvernay property. Sold sask viking to lower debt to cashflow ratios and at the end of the day (few years from now) add value to the shareholders that didnt sell LRE shares.
So yes a new management team is going to take this over. On what kind of deal ? I dont know but I hope its cash. 1.25 a share + debt and Ill be happy. The nice thing about Novus is that its a 1 area focused company. So a nice and easy addition.
One thing that everyone has to agree on is this. Novus is a property that Every oil driven company wants. The only problem is the price they are willing to pay.