Cequence Energy Ltd Common CEQXF

RE:Wow, this is deep

[roscoe74]

The last reincarnation of Spartan was formed at the wrong phase of the cycle and McHardie and co realised that fact. They sold out because they are builders, not operators and didn't want to sit around living within cash flow. Spartan did well acquiring Renegade.

Spartan Delta, the next vehicle in the brand, may merge with Cequence although it is merely speculation on my part. The base for Spartan is Return Energy which has some decent Charlie Lake play dirt around Gordondale. It has the same problem as Cequence, namely a tiny concern with no capital and no growth, existing within cash flow.

To me, there has to be consolidation, get rid of caretaker management in favour of tier one teams that have access to capital and that can leverage the coming turn in the cycle to full advantage. A rising tide floats all boats  but some boats will sail off, some will sink at the dock and some are just too small to buck the tide.

All in all, while neither Cqe or Rtn are at the top of the pile for quality, they are actively managed for future opportunity. It will be interesting to watch. Maybe catch the balloon rising instead of the knife falling.