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Gear Energy Ltd T.GXE

Alternate Symbol(s):  GENGF

Gear Energy Ltd. is an oil-focused exploration and production company. The Company carries on the business of acquiring, developing and holding interests in petroleum and natural gas properties and assets. Its operations are located in three core areas: Lloydminster Heavy Oil, Central Alberta Light/Medium Oil and Southeast Saskatchewan. The Company is also engaged in focused on improving oil recoveries through the application of water flood technology. The key properties in the Central Alberta Light asset include Wilson Creek, Ferrier, Killam, Drayton Valley, and Chigwell.


TSX:GXE - Post by User

Comment by Roscoe747on Nov 24, 2023 2:52pm
133 Views
Post# 35752039

RE:RE:RE:RE:Who’s going to buy Gear. Surge passed on it

RE:RE:RE:RE:Who’s going to buy Gear. Surge passed on itSurge stated they passed on Gear for "technical reasons" and "asset quality". IOW, high cost and low recovery for their asset fit.Their asset fit is admitedly first tier so Surge passing on Gear is not unexpected but it does demonstrate that the low SP is not just 'manipulation'.

While there may be quite a lot of cash sloshing about in the oil sector, that does not infer that any first tier producer will be throwing it at Gear. That said, there is no reason why Gear can't complete a business arrangement that makes it more efficient via a merger or disposal/ acquisition of assets or any business arrangement the Board considers appropriate.

What this process is telling shareholders is that Gear's present constitution is not sustainable in the current market reality. After the uphoria of 2022 prices proved unsustainable, Gear must reformulate itsself for the volatility of the future, guding for a low price environment with a balance sheet capable of executing on high price oil opportunities.

Returning cash to shareholders makes little sense until this transformation is complete.
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