Wembley/Pipestone (Montney/Charlie Lake Bonanza)
Really Advantage has made a big move into Kelts Sandbox, and Kelt has recently done land trades with AVV in the Wembley area so they would have contigious land bases.
The problem for AVV is not the balance sheet, approximately 670 million in debt, requiring AVV to sell 6 million shares to bring that debt down to the 600 million dollar range. The debt handcuffs are on, and AVV is now going to be struggling to fund a meaningful capital program.
The Wembley/Pipestond complex with Montney/Charlie Lake resource, is over 125,000 total net contigious acres of resource that can be exploited.
Kelt has both the resouce and the balance sheet, and does not have a bloated share float that they need to buy back.
So we know Eric is involved in AAV and now they have gone from a pretty well debt free company to one that is dripping in debt, just like TVE which has great assets and a terrible balance sheet with buybacks, dividends, and huge interest payment.
Kelt has the capital to do what they want and they are not saddled with a lot of obligations for their FCF, which provide them opportunity, when all its neighbors are drowing in Debt.
IMHO