RE:Winners and losers...Tamarack Valley also looks quite foolish.....
They bought assets below from Surge energy for like 100M.....
- Approximately 2,250 boe/d ( 2 ) of Provost Sparky (“ Eyehil l”) low decline medium oil under waterflood with four (4.0 net) Sparky primary horizontal wells expected to be on production in March. Tamarack has identified 12 net primary and 29 net waterflood conversion patterns in the area. This medium oil asset is in close proximity to Tamarack’s existing Veteran assets and can benefit from operational efficiencies.
So CJ does have good justification for delaying a divy or sharebuyback.
kavern23 wrote: One of the side benefits of this deal is it shows just how off base Eric's Nuttall thought process is..Eric is slowly going to get exposed here abit in 2021 as time passes....
Winners
CJ obviously a winner from this deal from the info that has been released so far on the deal.
No brainer deal...the assets acquired should pay for themselves in under 2 years.
5M-7M a Q in cashflow is likely range of acquired assets.
Losers
Eric Nuttall. Eric has yapped about share buybacks and dividends in the Canadian patch but this delays that from happening for Cardinal by some time. Eric's assumptions on the M/A market and just how cheap it to acquire other companies is something he is not factoring in.
Gear Energy. Gear is also in Killam and this deal would have helped Gear more then CJ even.
Gear had a delay in credit extenstion and they obviously probably couldnt compete financially with CJ for this.
The Venturion Oil sell metrics make Gear look crazy overvalued.
Look at the numbers, Yes it is not apple to apples as Gear has some light but f*ck man...Gear looks embarrassingly overvalued..
Investor hype and mania can push stocks higher then they should trade.
Venturion has 7.5 M barrels proved developed resources to Gear's 7.25 M barrels.
Venturion is really about half the size of Gear production wise.
Rememeber Gear has drilled wells in Q1 but Venturion hasnt drilled since like 2019.
Venturion can produce 3000 BOE with a small capital program.
Cardinal basically bought half of Gear torque for under 50M dollars.
And other loser is the retail investor.
"mania" mentality is taking over and it is not matching what assets really are worth in the market place.