Cequence Energy Ltd Common CEQXF

RE:RE:the market has clearly not priced for 60+ wti

[exprohibition18]

mike49 - i must say-  find myself appreciating all your viewpoints!

 To me a favorable financing would allow flexibility to divert some free cash flow towards retiring severely undervalued shares. $2MM doesnt get them even 1 well- but when you consider it could today retire 10% of the entire float and really tighten up the cap structure- that causes me a bit of a double take.  These allocation decisions shouldnt be mutually exclusive,  having some flex to elect to grow  production per share  thru drillbit versus thru share repurchase adds a dimension to their toolbox that they have made little use of. 

I would argue that hedging too could serve as an extremely valuable tool that is being underutilized!  E.g. Writing covered otm options into a complex that arguably has one of the highest vol (at times ) in the macro world can also play some role in delivering ongoing hedge income  given our involvement in physical.


A NCIB could  help deliver the 1-2 punch to get us right back in the ring with peer group valuations (such as DEE) - a not inconsequential feat . As you know ,given the distressed levels we are trading at today- staging a full recovery to peer group metrics  would be an incredible feat. .

consider that delphi for instance- trades at ev of > 300MM  (versus our 80 odd mil in total ev) with basically the precise same production profile, only signifcant  discernible difference is the higher realizations from selling ng away from aeco over past year imho.