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Frontera Energy Corp T.FEC

Alternate Symbol(s):  FECCF

Frontera Energy Corporation is a Canada-based oil and gas company. The Company is involved in the exploration, development, production, transportation, storage, and sale of oil and natural gas in South America, including related investments in both upstream and midstream facilities. The Company has a diversified portfolio of assets with interests in 27 exploration and production blocks in Colombia, Ecuador, and Guyana, and pipeline and port facilities in Colombia. The Company’s segments include Colombia, Ecuador, Guyana, Midstream Colombia, and Canada & Others. Colombia includes all upstream business activities of exploration and production in Colombia. Ecuador includes all upstream business activities of exploration and production in Ecuador. Guyana includes exploration and infrastructure. Midstream Colombia includes the Company’s investments in pipelines, storage, port, and other facilities relating to the distribution and exportation of crude oil products in Colombia.


TSX:FEC - Post by User

Comment by SportyJon Jan 12, 2023 10:03pm
105 Views
Post# 35220119

RE:What happens to OYL shares if FEC is sold intact after Wei?

RE:What happens to OYL shares if FEC is sold intact after Wei?
Kcac, an interesting question indeed. Imo, a lock stock and barrel sale will most likely include the sale of both companies. The question I have is what if only corentyne is sold for all cash or cash and a small retained interest?  What would that look like for shareholders?  Let's say the cash portion is 1 billion USD.  Well fec gets 680 million and cgx gets 320 million. Short of a special dividend how do all shareholders get paid?   Well share prices should rise and retail folks can sell. However, fec would have a hard time selling its cgx shares in the open mkt. There has to be an end game and I have no doubt DeAlba has already thought it out. He's a distressed asset workout guy that eventually flips companies. This one may have taken longer than expected but it may turn out to be his biggest.   It will be interesting as I own both. I also believe that FEC's current sp has hardly any value baked in for its investment in Guyana.  With good results from Wei I think 3x from these levels in both companies is a reasonable expectation.  Lastly, I used a billion dollars above for discussion purposes and wasn't estimating the actual value of coreyntne.  Good posts as always kcac!
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