RE:RE:Tourmaline candidateWhat do you think of a Kelt/Tou 50/50 JV to develop Oak/Flatrock and Wembley with an eye to reaching 200,000 boepd (50% liquids) by 2023? Tou puts in $500M (TOU share issue) cash, Kelt vends in the lands, Topaz chips in $300M, the remaining funds from cashflow and bank loans. Liquids rich third leg for TOU. Crystallize Kelt valuation today with future upside.
mrmomo wrote: "No debt and cash on hand. looks to me like there might be an offer on the table soon."
Tourmaline? Really? C'mon man.....do you even know Tourmaline's motto? They are identical to Canadian Natural when it comes to acquisitions........ALWAYS on the CHEAP. That's why they & Canadian Natural are the biggest, baddest and ontop of the Canadian O&G food chain for the last few decades, especially CNQ. They've built empires on that formula and has worked VERY well for them. The words Tourmaline & Kelt don't really go hand in hand. As one wants to buy things really CHEAP and the other wants to sell things always with a nice PREMIUM. Nope, if someone want to take a run at Kelt (and that's IF they are willing to sell which isnt a given anymore BTW) it's definetly NOT Tourmaline. There's ABSOLUTELY no way Kelt mgmt will sell below $20k/boepd to ANYONE, especially when Tou is looking for under $10K. Good luck with that premise though.
Ideally, and the way i see things playing out for Kelt IF they're smart, would be to sellout in this fashion. Sell Oak/Flatrock to Arc energy at a REASONABLE price THEN sell Charlie lake first to Spartan IF they are interested IF not to anyone else THEN try Tourmaline last. Once Charlie lake is divested......buy Pipestone up completely with share exchange. Wait for oil prices to recover over $50 and then sell the whole company to someone like Ovintiv, Paramount or Seven Generation or private guys like Hammerhead. And exit the O&G scene totally by end of 2021.
Good luck to all..........