RE:RE:TakeoverHow would that interview from 2011 have any bearing on today? Since that time AXL has unloaded Garrington and Farrier which were worth 150 million and accumulated and paid off over 100 million in debt. So I would say that the company is worth that much less now than it was at that point in time.
Currently Anderson should be valued on the basis of 9 net sections at Willesden Green and the remaining, profitable Edmonton Sands locations and land.
The bet with Anderson is that before the first debenture converts they can get production to the point that they have sufficient liquidity to pay off the debenture without sinking the company. Or that the share price is strong enough that allowing it to be converted to equity will not result in excessive dilution.
The one positive thing I saw today was that Tamarack Valley has been quite successful in adding to their land posistion in the Cardium by pulling off 1 section deals. This bodes well for Anderson to be able to do the same thing, but at Willisden Green, as opposed to Pembina.
Why could the trading be the way it is? Who knows. If someone were to acquire AXL it would be because they have the offsetting land to our existing infrastructure. Bellatrix has made it clear that infrastructure is at a premium in the area so as opposed to building out their own someone could buy ours and get 60 additional net locations thrown into the deal. That would cost the acquirer something like 130ish million so probably not worth it.
If production could be over 4000 BOE/D for all of 2015 with the majority coming from the cardium with its higher netbacks AXL could cashflow 58 million at 40 dollar netbacks. If this could happen without needing to take on excessive debt then something good will happen, be it a takeout, acquistion, or unwinding of the debentures. All positives. If if doesn't still be in the same boat we are now. Haha.
My question is does anyone know exactly what J.C. Anderson's posistion is in this company? shares and debentures wise.