Cardinal FutureAs Venturion is the first buy CJ has done since Murrary Edwards became CJ's largest shareholder, Murrary must have gave the head nod. He must have incredible "pull" with both the BOD and CJ's management. Murrary in alot of ways has more pull by not being a BOD member and just our largest share holder. And that is a good thing.
But the puzzling thing is why would a guy like Edwards hook up with CJ when in the past 20 years he has not shown interest in starting new oil companies in Western Canada...I mean he must have had a ton of opportunites presented his way.
Perpetual Energy has a smaller type heavy oil pool underwaterfllod that is just north of the Venturion Assets. I am sure if the price is right...Perprtual will put this property for sale as it is non core and they are trying to survive. CJ probably would be th logical bider.
But I think one of the scenarios for CJ at some point of the future will be buying some assets from Canadian Natural Resources. Some of the legacy pools they have scattered around Alberta.
CNQ has non-core little to medium sized oil pools scattered all around Alberta.
Just finding operators and dealing with the BS is so not worth it for a company CJ's size on some of their convential stuff.
CNQ has never rationilzed thier portfolio.
Who could CNQ even sell these properties too? Market is dead.
CJ would be a perfect vechile to put some of these properties in.
CJ really probably needs to be 30-50k boe size before it pay a divy again.
Management can't write this in presentation.
But whatever happens, I don't think our lagrest shareholder Murrary really will strive for a 1 cent divy to be implemented as soon as possible when it means f*ck all to him.
Time will telll on what exactly happens, but I think our company could make a ton of money to spin out in divys if they can buy attractive properties at cheap prices.
Right now is an insanely cheap market.
Venturion was started with 140M in equity financings in like 2013 plus cashflow per year were thrown into the properties from all those years...sold for under 50M.
No point in drilling when can buy that cheap.
CJ future divy will be better if we keep doing this.
As a shareholder I don't want a divy right now.