RE:RE:Why would POU want to Own Nuvista?I guess you have to realize as an investor the landscape is changing all the time.
Nuvista has been doing anything and everything to prop up the balance sheet including selling infastrucutre to Topaz that will increase their operating costs, they have very short sighted objectives in mind.
Pipestone north is a science experiment right now, multiple zone, multiple well types and multiple completion stratigies, so it is very early days there and these will not be their best wells. They simply don't have the time or the balance sheet to approach this play in the strategic manner that this liquids rich plays like this need. So NVA is rolling the dice on pipestone, and buying NVA is kind of like buying a fixer upper.
POU does not need the stress of banks, and all of NVA leagacy issues, bond holders, pay outs, etc.
POU has running room, cash flow, a stock with a decent evaluation, a low share count, and every boe that is added is meaning.
NVA was in full decline in Q1, ended Q1 at 45,000 boe a day. I feel like NVA is like this too much debt, production in full decline, north pipestone high risk development (no production history, or track record for the wells), lack of infastructure and field startup issues.
I would like to see POU liquidate their NVA shares and buy down debt.
IMHO