RE:NAFTA ruling close?Hello people, still long in strong in PPR, it is the best play in Canadian juniors, by far. The Quebec exposure and the AB operation in light of the current crude WTI price environment, makes the share price an absurd steal.
Q3 was acceptable in my opinion, although nat gas pressured results significantly and WTI wasnt really helping either. Its funny tho, netbacks could be almost double in q4 and q1 given the recent oil gas price development. Nat gas is still a bit dissapointing however, IMO. Stretching that into all of 2018, as well as the new producing wells coming, we may very well have a FFO of CAD 40-50m next year, which is ridiculous in lift of the market cap.
It was very positive to see in the corporate presentation that management dedicated some more ink for Quebec. In fact, my sources tell me they are following thisas closely as any other of the juniors and Hey will be ready to ramp up when green light.
Also, on 24th NOV, ie on Friday, the final arguments in the lawsuit will be heard in the NAFTA tribunal. The verdict can be out at anytime, but a few months is typical as so understand. Ive read through the case. I think its a clear cut case, where forest oil who spent significant dollars in infrastructure, facilities, exploration and drilling, were expropriated from the river permit through Bill 18. Read it through:
https://www.italaw.com/sites/default/files/case-documents/italaw9311.pdf
the whole act of the QC government is Unbelievable and I find it hard to believe that Lone Pine Inc ie PPR should not be compensated for the damages. Forest Oil and Lone Pine evidently lost a lot here, claim that we, PPR, has taken over through the various restructurings. On internet I see the claim is USD 120m, only a small partner that would be terrific, although the full claim should be paid to compensate for the economic damage in form of alternative return on capital. Some articles say usd 250m... anyone know what the total claim is?
its very positive that government of Canada has responded to the claim by saying that he claim is exxagerated. That to me is a pre-emptive comment in a defeat case to limit damages, consequently I actually expect some positive outcome. Any out positive outcome will be very positive for he shareholders.