This "unfundamental" beating reminds me of CGI(GIB) obamacar The business lost in the Obamacare lost contracts of CGI were unsignificant and had really no fundamental bindings to the SP. The SP took very long to recover from that beating. In any case, it doubled up 12mth later when fundamentals demonstrated the value of the company.Shorters are usually responsable of this kind of beating... that was the case in CGI's experience.
The Leaders didn't figtht the beating, they said stay long, this is a good cie, and we don't have anything to disclose... we are solid, the time will prove it.
In the canadian junior, PRE has probably the best net backs. Also, using both WTI and BRENT as price bench mark, they average higher realisation price. They are now in good position to acquire assets from their bankrupt partner (contractual agreements always protects to partner in case of bankruptcy).
Except for the Interest/ debt burden, which they should be able to cover if average realisation price stays above 55 in the next 18 months (assuming it will be 60$ and up after that).
They only long term require milestone is the Rubiales oil field production contract, if this is not signed, and prices remain low, then i see the limited value of the Stock. It appears to me that the current valuation represents (based on the fundamental) the lost of Rubiales and below 55$ oil for 3-5 years.