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Athabasca Oil Corp T.ATH

Alternate Symbol(s):  ATHOF

Athabasca Oil Corporation (AOC) is a Canadian energy company with a focused strategy on the development of thermal and light oil assets. AOC’s segments include Light Oil and Thermal Oil. The Thermal Oil segment includes the Company’s assets, liabilities and operating results for the exploration, development and production of bitumen from sand and carbonate rock formations located in the Athabasca region of Northern Alberta. It also consists of two operating oil sands steam assisted gravity drainage projects and a resource base of exploration areas in the Athabasca region of northeastern Alberta. The Light Oil segment includes its assets, liabilities and operating results for the exploration, development and production of light crude oil and medium crude oil, tight oil and conventional natural gas. Its Light Oil segment consists exclusively of the Duvernay in the Greater Kaybob area with about 155,000 gross acres across Kaybob West, Kaybob North, Kaybob East and Two Creeks.


TSX:ATH - Post by User

Bullboard Posts
Comment by 5to10holdon Sep 23, 2019 2:05pm
271 Views
Post# 30155583

RE:RE:RE:RE:RE:Buyout per share if sold!

RE:RE:RE:RE:RE:Buyout per share if sold!No oil & gas company will respond well to take-over offers at this time as they are all trading at significant discounts to historical valuations and what their cash flows suggest/underlying resource.

My take on if a strategic investor acquires Ath is they are running ~20m per annum in corp G&A. At NPV10 that's 200m on what is only 350m market cap which by itself is just under 60%. Plus Ath sitting on significant tax pools which many strategic buyers would be interested in (and yes, these do have value). Plus trading a deep discount. Plus...you get the picture. 

This is why it is my belief no one will make an offer - difficult to offer a number that the board will accept and that won't make you look like an idiot to your own shareholders from a strategic buyer perspective. We are in a holding pattern... 
Bullboard Posts