Most interesting times..Now that I have more info...seriously this will be one most interesting stories to watch for a junior to start up in Fiddlehead. Interested to see how much cash management invests in it, supposed to close July 29th.
Last management team that tried this in Cardy was prairie storm energy and they didnt last and solid to inplay for cheap so...and priarie storm was bigger than what Fiddlehead got here.
If you are a YGR shareholder, it's great Petrus didnt get this cenovus package. Once Petrus get's this...well it wont be for sale again. Petrus has size to handle a bad well or low aeco.
So many scenarios that can put fiddlehead in a tight spot...continued low Aeco or 3 2 mile wells that contribute quite a decent amount ogf the 1750 boe a day that fiddlehead is getting.
It's similar to PNE assets they got from certus...isnt forver to wait before drilling again as need to replace the high producing well.
Fiddlehead can only delay drilling for so long as 3 high contributing wells that are still in a higher decline phase. I think all 3 of those wells have done 100k barrels in oil already each plus a ton of gas. Sweet spot wells are just worth sick money over life of well.
It's an odd property to start a new company with, like 200 barrels of oil and 400 NGl's per day and rest NG. Sure drilling locations are nice but need capital to drill.
The problem Yangarra would have had if they wanted this cenovus ferrier package is Cenovus wouldnt want to take any stock...cash only deal.
In theory YGR should be able to outbid petrus if fiddlehead ever puts the for sale sign.