READ: CPG acquired CUTPICK for $425M The retail investors who are IN DENIAL here and IGNORE all the fundamentals and sell, they must check this out too. CPG acquired Cutpick in May 2012 for $425 M ! Compare them:
1) Cutpick produced 5,600 boepd (65% oil) and had $83 M NET DEBT and did NOT have its own plant and associated infrastructure.
2) SCS produces 2,100 boepd (79% oil) (including the 250 boepd from the leak and the plant shut down of Q4 2012) , has 12 MMboe (79% OIL) , has its own plant and infrastructure in place and has $114 M NET DEBT.
After all, SCS can receive 200 - $250 M totally NOW as it more oily than Cutpick.
Exclude NET DEBT, this gives market cap around $100M which is $1,2/share !
WHICH SCHOOL HAVE YOU GRADUATED ?
IS IT THAT HARD FOR YOU TO UNDERSTAND THIS SIMPLE MATH?
CPG can also pay with STOCK and have a negligible dilution of only 2% !
READ THE EXCERPT
The consideration reflects a value of $6.04 per Cutpick common share based on a five-day weighted average trading price of $43.13 per Crescent Point share. The total purchase price is approximately $425 million, including the assumption of approximately $83 million in net debt, including estimated transaction costs and taking into account estimated proceeds from option and warrant exercises.
Cutpick is a private Calgary, Alberta based corporation engaged in the exploration, development and production of oil and natural gas. The Corporation is focused on the exploitation of its Viking light oil resource lands in the Halkirk area of Alberta. Cutpick current production rates are approximately 5,600 BOE/d weighted 65% to oil & NGL's. After adjusting for the value of land and seismic, the acquisition metric equates to $73,036 per producing BOE/d. To date, Cutpick has drilled 103 Viking horizontal wells, with a 100% success rate, in the Viking fairway at Halkirk.
The link:
https://www.marketwire.com/press-release/cutpick-energy-inc-enters-into-arrangement-agreement-1652273.htm