Worth the waitAdded 6,500 shares to my position today; Quick comments on the purchase:
- Price is $34.3mm in shares (this means roughly 15.6m shares at $2.19/share)
- SDX has no debt, cash of $13.5mm and total working capital of $23.7mm (most of the purchase price...)
- SDX also has $89mm of Canadian tax pools.
- Combined the two companies will have no debt and about $40mm of cash with over 4,500 boe/d of production, big growth potential + large tax pools
This deal is very cheap imo and sets TNZ up well for deal #2 (over $40mm in cash to leverage). Remember that TNZ is also completely unhedged on their Canadian production starting next week.