Scenario for Bne I wonder with bad blood from Obe and Bne past if a transaction with Bne and inplay oil would make logical sense for both shareholder base.
say for example 2 ipo for every Bne share plus Bne shareholders get a spinoff company called Bonterra that holds Charlie lake and montney land. So if Bne has 160m debt...100m goes with it to ipo cardium assets and 60m goes to new spinoff.
end result would be a 170m share outstanding, 20-22k boe a day cardium company with like 160m in debt and probably ability to pay 2 cents a month.
plus a Bonterra spinoff would probably trade at 2 bucks a share and have like 38m shares outstanding with ability to sell shares if required to fund more drilling.
no management team loses their job in this scenario.
Bne shareholders would obviously gain more than ipo shareholders but ipo shareholders would get better dividend sustainability if in a larger oil play in size. Debt to cash flow of a combined ipo and Bne cardium pure play at 20k boe can be around 1 if holding 160-170m range of debt.
Would 2 for be 1 too generous not sure.