Chances are Share subscription is fully subscribed As the new acquisition and share placement is closing on December 21, 2020, there is a very very strong possibility that institutions will grab the 40 million shares. I dont expect the shares to be available on the shelf for long, perhaps a day or two at most...
The upside is the float is still low at 263 million float (includes new issue).
Management did not have much option, either take debt or issue shares. I guess share issue was the most logical choice given that the acquisition is accretive.
With this acquisition Tamarack is massively increasing it's footprint in the oil play:
- 107,000 net acres in one of the most economic oil plays in Western Canada
- Jumping over 100% from currently 2,000 bbl per day to potentially 4,500 to 5,500 boe/d
- Netback of $27 boe (The Estimated 2021 operating field netback is based on WTI US$46.71/bbl)