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NORTHERN BLIZZARD RESOURCES INC T.NBZ

"Northern Blizzard Resources Inc is engaged in the exploration, acquisition, development and production of petroleum and natural gas reserves in western Canada."


TSX:NBZ - Post by User

Post by tvstockon Apr 28, 2016 2:29am
227 Views
Post# 24818688

This is how I see the TBE thing

This is how I see the TBE thingJust a personal opinion and I can be wrong :-

Some votes for the reduction of stated capital by 200 million should already be in via telephone, etc.  If NBZ issue new shaers to buy TBE, those votes will  likely be invalid. NBZ management should not be stupid enough to create trouble for themselves 2 weeks before their annual meeting. 

If they acquire TBE with all debt and fools with the dividend, they will face shareholders' rebel in the general meeting.

TBE plays are high cost and IMO dosen't provide good fit to NBZ . NBZ has slow down drilling etc with the CAPEX cuts. They will simply put money back to their own low cost plays instead of buying TBE high cost assets.

 https://www.northernblizzard.com/uploads/Documents/nbri-2016-apr-presentation.pdf  

P15 shows TBE fields need oil price above 50 to break even. 


Of course I can be wrong. But after reading into the stated capital reduction thing, I think they are trying to provide more room for continued dividend payment with that reduction.



Anyway forget about M&A jitters. Think longer term if you think oil price will be higher by year end, NBZ is a good buy with the current 10% pullback while oil is up 10%.
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