RE:Thoughts on recent eventsImo Steve is a brillant CEO and I have said that for awhile in many posts.
Alberta oil patch needs more finance/strat. guys and less engineers at the helm.
John what makes you think OBE next move is too sell Viking?
Why wouldn't OBE just split the company into two listed companies?
One of the reason it has made sense to keep Peace River and Cardium together in one company is probably need the financial juice of Cardium reserves to finance expansion deals like the woodcote peavine buy. Peace river without cardium probably cant get financing so easily if split into two seperate companies already.
I would be surpised if they sell viking in short term just for fact have quite a few new oil wells pumpin in esther...wont get that valuation selling into these high interest rate market concentrations.
Wierd move by tve...the CNQ gas plant fire shut in may be squeezing them.
OBE has such the leverage bidding as OBE can just build gaslines from gift and peavine into their main gas plants. Any new operator bidding on these tve woodcote assets will struggle with no gas plant to expand.
At some point when peace river is big enough no reason to mix those operating netbacks with cardium stuff.
Cardium + viking should be the future dividend paying stock with opportuntistic acquistions at low of commodity cycle and Peace River should be a growth engine.
Lets say Inplayoil ever drops below 1.20 in a mean ng market...shouldnt OBE at least consider? I think company needs to be spit to do any cardium expansion if price is right.
Another reason to keep the viking assets is if split obe into 2 companies...the caerdium assets would need viking FCF to have a decent sized drilling program. OBE jv with withcap is always going to roll and be funded.
I think one more year of a cardium drilling program and eventually can dump viking.