Just something to chew on over the weekend.....I think that we have a lot to look forward to this coming week.
Questfire Energy shareholders will be meeting on August 15 to vote on the Manitok/Questfire transaction so we may hear some news on the outcome of the vote by the end of the week. I am expecting the outcome of the vote to be a positive one. If so, then Manitok Energy will be expecting to close the transaction on, or about, August 22.
Once the transaction closes Manitok Energy anticipates gaining access to $132 Million in available credit and adding $20 Million in cash which should strengthen it's balance sheet significantly. Finally, Manitok Energy will immediately be producing 10,600 boe/d, up from it's current 7000 boe/d and they will also gain access to additional, ready to drill, drilling leases and additional land reserves, etc. as a result of the transaction.
If I look at Manitok Energy's peers, that also produce an average of 10,000 boe/d, such as Birchcliff and, even though Birchcliff has been established for sometime at this level of production, as a comparision, I believe that Manitok will look quite appealing to new investors. Birchcliff trades at about $5.00 + per share. Now I don't want to count my chickens berfore they are hatched but, once the transaction closes I suspect that analysts will be revising their outlook and valuations, to the upside, for Manitok and I suspect that the Manitok shareprice could still move up to a conservative $1.70 to $2.50/share, post transaction, given the current climate, until Manitok Energy reports on it's Quarterly results toward the end of the year and the company has been running with the newly absorbed assets. This company is dirt cheap. Presently, last time I looked, RBC had a fair market value (pre-transaction) of $0.13/share. Just as a side note: presently (pre-transaction) Manitok Energy is able to operate, and still make money, at $42.00 per barrel price so I suspect that they are in a position to absorb the assocated costs of the transaction in the current economic enviroment as it relates to the Oil and Gas Sector.
In the interest of full disclosure, I am a current shareholder of Manitok Energy, with 50,000 shares. As they say, I am putting my money where my mouth is and am eating my own cooking. Perspective investors are reminded that they should carry out their own DD and thouroughly research the company and form their own opinions, of the company, before investing. Have a good weekend everyone.