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Peyto Exploration & Development Corp T.PEY

Alternate Symbol(s):  PEYUF

Peyto Exploration & Development Corp. is a Canadian energy company involved in the development and production of natural gas, oil and natural gas liquids in Alberta's deep basin. The Alberta Deep Basin is a geologic setting situated on the northeastern front of the Rocky Mountain belt in the deepest part of the Alberta sedimentary basin. It acquired Repsol Canada Energy Partnership (Repsol Assets), which included around 23,000 barrels of oil equivalent per day of low-decline production and 455,000 net acres of mineral land. The acquisition includes five operated natural gas plants with combined net natural gas processing capacity of around 400 million cubic feet per day, 2,200 kilometers (km) of operated pipelines, and a 12 MW cogeneration power plant. These assets include Edson Gas Plant and the Central Foothills Gas Gathering System. The Company has a total proved plus probable reserves of approximately 7.8 trillion cubic feet equivalent (1.3 billion barrels of oil equivalent).


TSX:PEY - Post by User

Post by ValueCan1on Nov 28, 2019 10:43am
128 Views
Post# 30401874

Non-dilutive rights offering

Non-dilutive rights offeringIf net debt is what’s keeping these stocks so undervalued, why not just do a rights offering to clean it up.  Some say you need a major shareholder sponsor, but I think even if you get 50% subscription the stock should go up a lot as the realization that the risk is largely reduced.  It’s non-dilutive to subscribers and those who don’t want to subscribe should probably sell anyway.  It will also chase out the short sellers as downside is negated.  It’s kind of a self fulfilling thing.
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