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FORENT ENERGY LTD. V.FEN

"Forent Energy Ltd is an oil and gas exploration, development and production company with mineral rights holdings, reserves, and production in Alberta, Canada. The company does a production of oil reserves through development drilling on three core properties in south-central Alberta; Twining, Provost, and Wayne. The majority of Forent’s production is generated from these properties. The firm generates the majority of its revenue from Oil sales."


TSXV:FEN - Post by User

Comment by Phonse47on Mar 15, 2016 1:53am
91 Views
Post# 24658555

RE:averaging down?

RE:averaging down?this is a kunundrum. You will need to buy 10 new shares for every share you now have at .3 to break even if the post consolodated price of .4 is realized. How many shares do you have? I think it is getting tighter on buying under .3 but you never know.
I would also want to know if shares purchased pre amlgamation will have any restrictions upon the exchange of FEN for POG. It is possible there may be a holding period of 4 months or so. I am totally guessing on this point. But if you are free to sell post amalgamation i believe you would have a pretty good chance of breaking even. My belief is of course based on trusting the amalgamation will proceed which i do. I wont make a litany of the reasons i believe this. i have said enough previously.
Holding could also work. If you believe as i do, we will see an increase beyond .4 post consolodation. I think you could see 1.4 or more within a year or so. I also believe there is potential to exceed this in a shorter time but this is more speculative thinking. This potential is related more to the general belief oil will be in the $40 range early mid 2016 and possibly $50 last quarter of 2016. Additionally this particular team has considerable experience in these aquisitions and the environment for this kind of activity is ripe. So if the capital partner delivers then executing is a real potential. I have a slight concern at the definitive agreement as compared to the letter of intent in that there was a condition the capital partner have $40,000,000.00 financing in place. The definitive agreement references $24,000,000.US which is less than the $40,000,000.00 even after conversion. 8 to 10 million less depending on the conversion rate. There is probably an explanation as there are moving parts to this deal. The information circular should answer some questions.
I would not think to recommend what you should  do. I can only say that i have continued averaging down. I hold 200,000 shares and plan to buy more.I like the team and the timing. Good luck and i hope you make gains.

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