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PetroFrontier Corp V.PFC

Alternate Symbol(s):  PFRRF

PetroFrontier Corp. is a Canada-based junior energy company. The Company is engaged in exploring for and the production of petroleum and natural gas in western Canada. It is focused on developing two Mannville heavy oil plays in the Cold Lake and Wabasca areas of Alberta. The Company has interests in approximately 16 gross (15 net) sections arising from several joint operations with the wholly owned energy companies of the Cold Lake First Nations (CLFN). The Company also has a joint venture agreement with the wholly owned energy company of the Bigstone Cree Nation (BCN), covering 1,024 gross (922 net) hectares in the Wabasca area of north-central Alberta, of which half has been earned as a leasehold interest. Those interests are located between CNRL’s prolific Brintnell enhanced oil recovery project producing approximately 50,000 bop/d of heavy oil and Cenovus’ proposed 10,000 bop/d thermal heavy oil project.


TSXV:PFC - Post by User

Bullboard Posts
Comment by mining_pays_my_billson Aug 06, 2014 3:32pm
204 Views
Post# 22814932

RE:RE:ReReReRe: After almost two years..

RE:RE:ReReReRe: After almost two years..Personally I am not a fan of class action lawsuits. I think they take too long. They tend to drag out for years, and cost both parties a lot of money. And in the case of PFC, it could bleed them dry chasing their $. It’s prudent to try and get as much $ as possible now,  rather than years down the road.

In a case of failed well stimulation, PFC may not even be here a few years down the road, so McQuarie’s payout won’t do them any good then. Additionally, they are claiming McQuarie’s non-payment destroyed their share price, which it did, but if they wait until after a non-successful well stimulation to make that claim the courts might be like ‘well, it wasn’t McQuarie that destroyed your SP, it was the fact that you have no marketable product.’

In the case of a successful well stimulation, PFC’s share price will skyrocket from where it is right now, and a few years down the road we could be 100’s of % current market cap. So, a few million $ from a class action will have a smaller effect on share price, because it will represent a smaller  % of the company’s worth.

Right now, if McQuarie pays out $5M, or more, that’s at least a 30% increase in market cap and subsequent share price.

And the best for McQuarie, it’s the least risk for them to pay now. If it’s failed well stimulation, then it’s $5M lost for McQuarie, that sucks yes, but big deal. But if it’s a successful well stimulation, the payout would be infinitely higher because McQuarie essentially robbed PFC of 15% of a producing oil field. Amicable settlement now is the safest course and the one I am hoping for.

All in my honest opinion.

Bullboard Posts