Post by
MikeOxLong7 on Sep 05, 2013 10:00am
Potential RE and PXL Merger?
What do you guys think about a RE and PXL merger? They seem to have many common interests including a focus on heavy oil, marketing by rail and HVL to name a few. A tie up would create a producer with over 6000 b/d, an EV of approx $160 mil and bring in the PXL HVL expertise. Debt would be sub $50 mil and there would be many economies of scale realised for the oil by rail programs. PXL could also get onto the tsx and the increased size should eliminate much of the risk discount we are seeing with these two producers and get us substantially closer to the magic 10,000 b/d to initiate a dividend. I beleive both are undervalued. I have a large position in RE and a small position in PXL. GLTA