In area's that has limited infastructure advantage acquistion provides gas processing capacity, now add to that highly economic Charlie Lake wells to take advantage of.
The acquisiton of these assets seem really cheap when you consider they only issued, 65 million dollars in a bought share deal + some over allotment. (11 priced shares were issued). It is accretive and
The addition of 100 plus tier 1 charlie lake well location, plus a bunch of field batteries and gas processing make is a pretty fantastic deal, all in their current neighborhood.
- Advantage has torque to improved gas prices and low cost production.
- They now has diversified to include oily montney and charlie lake opportunities.
- They have low operating costs and plant capacity.
- They have very much improved economics going forward
Advantage issues very few shares and has acquired a some great assets, in Alberta Montney, with one the the best oil plays Charlie Lake.
I think Advantage looks good here to me, and i think with their current infastrucuture they can leverage it in the production of higher netback BOE's.
So a big win here is my opinion, and once we get better gas prices it should really take off here.
This stock is highly leverage to gas, but has a great oil future.
IMHO