BNE:strong buy on this news: 50% of PDP NAV w/o Montney & CLGot to much better capital efficiencies organically instead of an expensive big acquisition. With no dilution.
They looked at Cardium and found something better, complemented by cheap land buys over 2 years and their own land acreage.
Together with the Montney great planning; both the 2nd Montney well and the Charlie lake wells still happening this year.
I am pretty sure it’s paid for as this has been going on for awhile and I already thought Q1 and total capex ‘24 was too high vs last year ROC projections: for about $ 25 mln , the acquisition price incl facilities.
If prices hold we will still hit divvy according to their 2024 ROC plan in my view.
Montney well online beginning of Q2 will mean a free drill end of year.
Great planning and investing in the future while still hitting your targets. No dilution. Amazing really.
I believe this is where the comment in the article came from (see my previous post): organic growth and sustainable divvy growth at better capital efficiencies.
R.