Follow HONEY to the POT OF GOLD! VII generation and Arc investors should invest in companies like POU, the resources they have at Karr and Wapiti are world class. Management is highly vested and continues to buy shares. They value their share float, and The CEO is the largest shareholder, Chairman of the board, has oil in his blood and is not some accountant.
This VII generation deal just robbed all the shareholders of the company’s embedded value, VII generation’s has a little more debt than arc, but it also has twice the condensate/oil production, and more than 5 billion more in reserves.
So, if VII generation just produced their reserves, they could pay down their debt, and they would look like superstars. Likely that is what ARC is telling CPP, VII generation has over invested in resource and in infrastructure, you need a strong hand to pull back the reins and we will double the value of the company milking the investment management has already made.
Management was stupid and sealed their own fate, reserves and infrastructure buildup need to come to an end, and a company needs to make money a pay shareholder.
ARC will be a 50% diluted version of VII Generation.
If you want to experience the sweeter things in life, if you are looking for that Pot of gold at the end of the Rainbow, follow honeypot over to POU. Where they are significantly undervalued, they are in all the best plays in the Country, and have more than 1.3 million acres of oil sands leases and 4 thermal projects on the books.
POU actually has tons of investment on the balance sheet, it they were all backed out in the right environment the company would be low low low in terms of debt. POU will produce more condensate per boe of any Canadian company after the 1st quarter of 2021.
These public company don’t care about investors and you have to follow cpp around, who may not even understand how bad a deal this is.
IMHO