RE:RealityBNE and OBE combined could have one rig in Pembina and one rig in Willy...full time year round to be as cheap as possible.
And combined they could start an internal division to do the reclaimation "inhouse".
And the divy could start alot sooner.
Investors want size.
kavern23 wrote: Reality is Bonterra needs to merge with someone like OBE. Like is this sustianable for each OBE and BNE to pump this much capital (YEARLY) into Cardium each?
Economies of scale are needed.
High grading of drilling porfolio can be done combined.
And a dividend is WAY more stable the bigger the company. A bigger company can handle low prices in commodity cycle better.
OBE and BNE cardium assets combined are over 30k....that is how you pay a stable divy into the future.
Ego's have to be pushed aside. As lower commodity prices will just force this...whether it is in 2023 or 2024 or 2025.
Bonterra shouldnt be buying land....BNE strength in it's asset base is low decline part of their portfolio...not new drills.
When OBE proposed merger last time they didnt really plan on drilling BNE land too much.