MEG Energy Corp T.MEG

Alternate Symbol(s): MEGEF

Energy Oil & Gas Refining & Marketing

MEG Energy Corp. is a Canada-based energy company focused on in-situ thermal oil production in the southern Athabasca oil region of Alberta, Canada. The Company is engaged in the development of enhanced oil recovery projects that utilize steam-assisted gravity drainage extraction methods to improve the economic recovery of oil. It transports and sells thermal oil (AWB) to customers throughout North America and internationally. The Company owns a 100% interest in over 410 square miles of mineral leases in the southern Athabasca oil region of Alberta, Canada and is primarily engaged in sustainable in situ thermal oil production at its Christina Lake Project. Christina Lake Project is a multi-phased project, located 150 kilometers south of Fort McMurray in northeast Alberta. It comprised of approximately 200 square kilometers of leases.

TSX:MEG - Post by User

MEG Energy Corp

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Post by shambano1on May 31, 2016 10:15am

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Post# 24918930

Imperial oil will not go hostile

if SU had more cash on hand and more balls they would have gone after MEG already but after a long hard battle with COS and after winning a low-ball opportunistic takeover battle and then the wildfires problems, they are not in battle formation.

too bad because SU would not be afraid to take the battle of another low-ball takeover to the common man, and persuade them lower for longer means I'll only pay so much for your long life assets, even though they are low cost and low maintenance capital.

so as we wait for the Access pipeline news, possible JV's according to some on this form, my prediction was always that IMO and MEG would sooner or later combine forces. BUT IMO is not SU and I get the feeling that IMO doesn't want to take the battle to the streets and fight for the common man's shares and play the lower for longer game.

they prefer to go the traditional route of a takeover offer through the board of directors, friendly and safe from any forms of bad press.

but IMO also knows there is a window of opportunity for action and that window is where oil is trading under 55-60 WTI and as the world oil markets slowly get back into balance and the lack for financial support for more shale drilling programs, at least for 80% of the shale drillers, oil supply is slowing dropping back and demand is showing continued signs of growth because of low prices.

this week's oil supply numbers might actually shock the market with gasoline use way up for holiday traveling use.

the question is really a question of what offer would be acceptable for IMO and MEG takeover ?

the MEG BOD has a fiduciary responsibility to look at all offers and make a decision that is in the best interests of their shareholders, so they just can't say NO without looking very seriously at an offer.

considering that MEG's average price over the past 25 days might be in 6.25-6.50 range then a 92% premium takes the offer up to the 12.50 range.

I would be very happy with an offer for 12.50 from Imperial and I think it would be approved by most shareholders.

again just speculating here but as oil prices recovers, the chances for a takeover increase because of the discounted value in MEG's assets, producing and future producing.