RE:RE:RE:Entrada...Depends on what the payback period on the assets bought....
PROP was an unexpected buy because it made sense this way.
The smart companies seem to be able to do both...raise divys and buy growth.
Look at whitecap's strategy.
OBE needs to be a stable 30000 plus BOE to start thinking of a divy.
If OBE is going to do a buy it is likely from now until Jan 31...sometime before we get new financing.
Once OBE does it's deal refinacing the ship prob has sailed on buying somone.
Prob 5 million in cost synergies on any combo...plus eventually the company needs the drilling locations in East Crimson.
OBE does become a more valuable the more of willengseden green it get.
And eventually OBE is going spend capital on waterflood projects....easier to do a large scale waterflood projects the more of east crimon OBE owns. Entrada owns that square,
Strategic reasons for wanting to do it.
My point is if Entrada is producing so low it shoudnt cost much and this effect divy timing...
JohnJBond wrote: OBE won't be buying anything else until they start paying a dividend and have a much higher share price
At that time the purchase will be paid in cash or shares