RE:BIG VALUE and torqIf you look on Topaz's presentation, they call out Advantage's ESG record and how great they are as an operator.
You're going to see a three part deal and you'll deny it, but it's there and you'll understand why they call me "the great" Cheadle.
I'll preface the below with, this is my opinion:
1) Kelt will sell Wembley/ Pipestone to AAV. This is the reason why they sold the 12.5% at Glacier, to free up the capital to do so.
2) Tourmaline will acquire Advantage (the new Advantage) with the newly acquired Pipestone assets.
3) Not necessarily sequentially, but 2 & 3 likely will be announced at the same time. Topaz will purchase a GORR and WI in the newly acquired Advantage, from Tourmaline, thus funding the acquisition using midstream / royalty capital (where there actually are investors these days).
Note: Don't worry about Kelt, Wilson has an excellent asset at Oak/Flatrock to develop, debt free and ample capital to build out / eventually sell. This will be their new Inga and very likely more divestitures pending (to BIR).
~The Great Cheadle.
Wildcattter wrote: they sold a minor 12.5% interest in the big gas plant for... get this... $100 Million in cash on the spot! $100 mill already now applied to the debt. that shows the gas plant to have a value of 8 times the price or.. $800 mill with AAV holding $700 mill in value... plus more if ya get control I would say. sold to a smart team at Topaz.. Mike Rose.. they know value and paid a load of hard cash... cash they could buy distressed assets for pennies on the dollar.. and they value a small holding in that Glacier Plant... shows they know Glacier is a great asset
$700 for Glacier gas plant... and the shares trade at less than just the gas plants value..lol,, no value for the lightly drilled Glacier land block that is so cheap to produce the gas... they can produce 300 Mmcfd and... no value even when it cash flows $150Millionish next year...
no value for the latest oil discovery at Progress where the wells flow at 1500 bopd oil... high flow, light oil... same stuff TOU and KEL are chasing right up to the land we own... their wells show 150kIsh cumulative oil to date... they can pay out in 6 months... yes only 6 months... and that oil pool has been deliniated across the land block thru the 6 wells drilled since 2017. slow and methodical they went until they hit that D3 sweet spot and the oil flows strong... again like the gas they produce this oil will be the low cost end of the production costs.. no value, it is all the gas plant...lol
then... low cost gas, low cost oil.. best gas plant... what else.. there is more...at their land block at Valhalla and perhaps similarly at pipestone... low cost, prolific condensate can be produced... actually it looks like Valhalla is the best even though we know how good Pipestone is as so many other E&P guys like NVA, PIPE, TOU, KEL VII... this is a proven condy rich area.. Valhalla looks to be best although only have 8 wells on line thru a new production facility already paid for.. no value..lol