Pay attention
to their latest corporate presentation. No mention whatsoever of Foothills or Central Alberta operations.
Does that mean that they are close to a sale?
Obsidian Energy sold 460 boe/d in Q1 for $27,000 per boe/d of gassy assets or only 28% liquids.
How much could be worth their 2,097 boe/d at around 35% liquids with very low decline rate?
This could change that story up side down overnight. You would end up with a growing producer in the Cardium at Ferrier or right next door and partnering with Yangarra in one of the best and highest profitable plays in Canada.
Proceeds should be sufficient to cover in full that $35 million term loan coming due in October 2020 along with more cash to accelerate development. Debt fear goes away and further revaluation since this is now a liquid producer vs a gas producer.
Cardboard