OTCPK:BLKPF - Post by User
Comment by
pablo87on Nov 09, 2018 1:21pm
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Post# 28951531
RE:RE:RE:RE:Stellar Q3
RE:RE:RE:RE:Stellar Q3Burgundy/Templeton - If I'm a large institutional investor in a small company, I need a unique proposition and I need (a lot) upside. In case of PXX, the upside is from Onion Lake ramp up to 14K, narrowing of heavy oil price gap (WTI-WCS differential), and in future, the SAGD oil sands project. The rest of assets is non core and should be disposed of.
With IPCO, they are diluting their upside by ~half IMO (IPCO has very limited upside in my view) for zero price appreciation.
In addition, the combined entity ends up with more non core assets - the premise of IPCO itself, its raison d'etre to begin with, was for Lundin Petroleum to get rid of the non core assets (and liabilities...) which is exactly what the plan should be for PXX but instead they are doing the opposite.
Also, if you want to see what good management looks like, look at what new CEO is doing at PGF. Its what should have happened at PXX. Alas.