RE:A promising deal based on rising oil & high IRRs at MichichiGeorge98 wrote: This is a very promising deal because the oil prices will continue to rise by year end and the stock will definitely exceed 15 cents by then. I can't believe that the tide will not lift all boats a.k.a the energy firms especially if we take into account that:
- MQL has a great play at Michichi with very high IRRs which is much better than Viking no matter how u slice it.
- MQL's leverage is reasonable and manageable upon completion of the deal and the cash injection from AOS.
Instead, if we had to wait for AOS to give us 15 cents as a result of the liquidation, we would not receive them before December 2016, the earliest. But that would be too late for buying cheap an energy producer. This is how we have to think to evaluate this deal.
I will vote for the deal joining Bruce Mitchell.
And nobody can doubt that:
-Oil prices will be higher by year end.
-MQL has a great low cost play with robust economics better than Viking's in Michichi.
- To get 15 cents from AOS liquidation we have to wait until December 2016 and it will be too late then to redeploy this cash and buy cheaply another energy producer with a great play equally good as MQL's.