One more comment on the ECA Gordondale assets purchaseHere is another point about this deal that is well worth considering. With Birchcliff’s new size and heft and with the huge increase in the share float, it finally creates an opportunity for investment funds to get in for a good bite of the action. The old float regime, (approx. 160 million shares) didn’t really allow that in a meaningful way. Now there will be sufficient liquidity to enable such transactions. Schulich’s ownership has lessened percentage wise but in dollar amounts it has not been diminished. He still has his skin in the game but he’s generously made room for others. All in all, it’s sort of like moving from wheelbarrow to Euclid truck.
Let’s not be nave. What has been created is either going to be a big success or its opposite, -a big failure. Either way, rest assured, it will be big! Given the timing of the deal, coinciding with an improvement in oil and gas prices and with the rock bottom price of the assets purchased I would lean to it being a success story.