OTCPK:PDPYF - Post by User
Comment by
righand2on Mar 19, 2017 11:51am
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Post# 25999178
RE:Look what $276 million bought :
RE:Look what $276 million bought :
Looking at it another way, PPY paid about 35 cents/mcf for 1P reserves, a lot of which can be brought on stream quickly and relatively cheaply utilizing existing drill pads and other infrastructure. PPY only paid 14 cents for the 2P reserves, which is dirt cheap as well.
So yes, maybe PPY didn't need to buy more reserves, and yes it sucks they did a bought deal at such a low price. But the shares they gave in exchange for the assets simply reflect how cheaply we acquired those assets. If UGR wanted full price for their reserves, the gas plant, and other infrastructure, we would have had to give them a lot more shares. They probably realise that PPY's share price they will rise, and that is how they will get paid fair value for what they sold.
If everyone would stop whining for a minute, and actually look at the deal, they might realise it isn't as bad as some pretend it to be. I think most of the big complainers are not investors at all, but stock flippers. Their "opinions" are worth less than nothing.