StrathCona is in doo-doo (16% POU Ownership)
170 Million Dollars
https://paramount.mediaroom.com/2018-06-14-Paramount-Resources-Ltd-to-Sell-Non-Core-Oil-and-Gas-Properties-in-Resthaven-Jayar-for-340-Million
Stath - Cona
Was not a marriage made in heaven, a heavy oil producer who has infinite reserves, don't they all have infinite reserves, married with a gas, high liquids condensate producer. Nothing more could be futher from the Truth, if my Spidey Senses are Correct that is why JR resigned.
Cona assets have been passed forward by the receivers of companies that have failed them, and now StrathCona (Not) says they have the expertise to operate them and generate free cash flow.
Smoky Resthaven has had some of the best well results in all of Alberta, and it is the same land that Strath wants to discount in their evaluation, is the prime land that surrounds the VII generations land base they purchase from POU. Maybe VII generations will confirm for StratCona that the lands are only with a quater of what they were in 2018. No Way.
So i expect 89 million dollars in a out of court settlement added to the 45 million they alreday got from strath, so 134 million will be the final answer. To the Strath Cona mess.
The judge will ask why did you put JR on the board, and what was your process regarding the valuation of Corona.
Two questions they will not be able to answer.
89 million more, that is about 15 Wapiti wells or 15,000 boe production increase for 2021.
If i were POU i would ask for damages associated with the settlement, especially considering that 170 million makes a big difference on your bank line.
IMHO
Best Outcome
POU gets 170 million from stratcona, not likely second best outcome, they put the lands on the market and split the sales revenue. Strath will not go for that. Likely outcome they pay out the remaining 89 million dollars they owe POU.
POU saw it all.
JR was put on the board to provide oversight and goverance to the smoky/resthaven assets. When the company destroyed the value of those assets with the corna purchase he had to leave the board. StratCona appears to me to have a lack of fiscal discipline and corporate goverance, thay they likely do not want to come out in court. I think they will pay POU the 89 million they claimed, 134 million in total or the entire board will have EGG on its FACE, and a loss of investor confidence.
IMHO