GREY:DPGYF - Post by User
Comment by
jerrybeon Oct 17, 2015 8:46am
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Post# 24200971
RE:Sale seems like a give away
RE:Sale seems like a give awayI agree with you. The per flowing barrel is extremely low. And remember, they have not put any capex dollar in it for the last two years so the decline rate should be extremely low and you could double production in a hearbeat with capex dollars.
They truly gave it away...$12M is a joke, I was hoping for at least $25M. But that just tells you what a bad asset it was to start with, basically, not profitable through the cycle and having to sell in the middle of these TCPL pipeline interruptions. Basically, selling at its lowest was somewhat of a desperate move in my mind.
At least, now they can focus on the Montney and grow that asset that will become quite the jewel over time. I expect the NAV to resume its climb back again at the end of 2016. Accordingly, I expect a stock price appreciation of at least 30% by the end of 2016. There are better deals elsewhere but I actually added to my position after the operational release two weeks ago. Their Montney asset will grow in value under current management. They just need to derisk it further by going West on their big piece of land. If they do so, their NAV will explode.