RE:An observation today....
You know you are probably right. No one responded to your post because with $45 dollar oil there was nothing to say. Toro's land is clearly not economic at current prices despite what the CEO implied on BNN a while back. However, if oil goes to $55 or $60 per barrel after the non-opec production cut gets signed off on Nov 10, will that still be the case? My personal experience has taught me that the biggest winners in a commodity price recovery are highly leveraged producers and companies that move to marginal profitability from being uneconomic. This company would fall under the latter. Toro will be worth so much more as oil recovers over time given how much land they own in the Viking Fairway. They will hopefully pop when the next drill program is announced and we will be off to the races if they get better drill results out of Consort and Hamilton Lake. I'm surprised they have not implemented an EOR scheme at Hamilton Lake but it might be too expensive. As an alternative, the Saskatchewan gov't dramatically cuts royalties from utilizing a polymer flood so they could do that if prices justify it. Water flood doesn't appear to be very effective. Barry Olson is a smart CEO, he has just been holding the wrong asset at the wrong time. I welcome the rebirth of this company in the coming year. Those warrants have tonnes of upside and almost 3 years to pay off.